ICOCalendar.Today

  • ICO Directory 📖
  • ICT Token 🔥
  • Blockchain News 🗞
    • Ethereum
    • Binance
    • Cryptocurrency
    • Litecoin
    • Monero
    • Ethereum Classic
    • Bitcoin
    • Tezos
    • Tron
    • Cardano
    • EOS
    • Algorand
    • ZCash
    • Dash
    • Chainlink
    • NEO
    • Maker
    • DeFi
  • List a project 💣
  • Submit Press Release 👍
  • ICO Directory 📖
  • ICT Token 🔥
  • Blockchain News 🗞
    • Ethereum
    • Binance
    • Cryptocurrency
    • Litecoin
    • Monero
    • Ethereum Classic
    • Bitcoin
    • Tezos
    • Tron
    • Cardano
    • EOS
    • Algorand
    • ZCash
    • Dash
    • Chainlink
    • NEO
    • Maker
    • DeFi
  • List a project 💣
  • Submit Press Release 👍

The CME is Losing Its Bitcoin Options Market Dominance

7/7/2020

Comments

 

The options market is becoming a prominent part of Bitcoin’s ecosystem, with the total open interest seen across all platforms rocketing higher in recent times.

Late last month, the benchmark digital asset saw its largest options expiry ever, with nearly $1 billion worth of monthly and quarterly contracts expiring on a single day.

At the time, this represented over 60% of the total outstanding OI.

This expiration caused the OI for options contracts to plunge, and data now shows that the CME was hit hardest by this decline.

Institutional investors may also be growing less interested in trading contracts for Bitcoin, as the platform is now losing its share over the options market.

CME Hit Hard by June’s Bitcoin Options Expiry 

On June 26th, a combination of monthly and quarterly Bitcoin options contracts expired, with their value totaling at just under $1 billion.

This marked the largest single-day expiry ever seen within the crypto industry and is a sign of the options market’s immense growth over the past year.

Naturally, OI for contracts plummeted after this expiry took place, falling from $1.8 billion to lows of $894 million.

The CME – a platform that caters to family offices, active funds, and institutions due to its high minimum contract requirements – was particularly hit hard by this recent contract expiry, as interest on the platform declined by 67% following the expiry.

Arcane Research spoke about this in a recent report, saying:

“The total bitcoin open interest halved (falling from $1.8 billion to $894 million) following the large contract expiry of June 26th. CME was hit the hardest as its open interest dropped 67% from $439 million to $145 million on the day of the contract expiry.”

It doesn’t appear that institutional traders are too eager to jump back into new Bitcoin positions either, as the CME’s dominance of the options market has since slid from 25% to 15%.

“The loss in open interest caused CME’s relative shares of the total open interest to plummet from 25% of the market to below 15%.”

Bitcoin

Image Courtesy of Arcane Research.

Over the same period, Deribit’s dominance over the options market rose by 8%.

What Options are Saying About BTC’s Outlook 

NewsBTC reported yesterday that Bitcoin’s options market seems to be suggesting that the benchmark crypto will continue to extend its bout of consolidation in the weeks ahead.

A research firm cited in the report said:

“Bitcoin having one of its very quiet moment, implied volatility term structure is record steep.”

Bitcoin

This steep volatility term structure indicates that the implied volatility for short-term contracts is low, as investors don’t anticipate any imminent movements.

Featured image from Shutterstock.


Via https://www.newsbtc.com/2020/07/08/the-cme-is-losing-its-bitcoin-options-market-dominance/?utm_source=rss&utm_medium=rss&utm_campaign=the-cme-is-losing-its-bitcoin-options-market-dominance
Comments

    Blockchain News

    Leading global blockchain news provider. A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography.
    BLOCKCHAIN NEWS

    Archives

    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    November 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017

    RSS Feed

​About

  • About us​
  • ICT Token
  • News​​
  • Testimonies
  • Terms of Service​​
  • ​​We on Google News​ 🤑
  • ​We in the media
  • ​Partners

Let's connect!

News Feeds

  • Blockchain News
  • Jobs Board 👨‍🎓
  • Bitcoin News
  • Ethereum News
  • Binance News
  • ​Tron News
  • Cardano News
  • EOS News
  • Tezos News
  • Stock Markets
  • COVID-19 News
  • Crypto News
  • Chainlink News
  • Litecoin News
  • Dash News
  • Monero News
  • ETC News
  • NEO News
  • Maker News
  • DeFi News
  • ZCash News
  • Algorand News
© 2017-2020 ICOCalendar.Today. All Rights Reserved.