CME is gaining presence in Bitcoin options in a market still dominated by Deribit and exchanges, new data reveals.
Bitcoin (BTC) derivatives interest is putting in “fast” growth this quarter — and CME Group is leading the way for options, new data shows.
According to monitoring resource Skew, the past weeks have seen CME dramatically increase its share of open interest for Bitcoin options.
CME market dominance on the up
Open interest refers to the total derivative contract volume, which has not yet been settled. CME had already set all-time highs in early May but has since increased its presence dramatically.
As of June 4, open interest stood at $256 million, just $3 million short of all-time highs. By contrast, at the start of 2019, CME recorded a minimum of $2 million in open interest.
“Bitcoin options open interest growing fast this quarter,” Skew summarized about the broader open interest trend.
Zooming out, the market remains dominated by exchange-based futures operators. The lion’s share of open interest belongs to Deribit, with OKEx and LedgerX also major players.
Bakkt, the other well-known non-exchange futures platform, has negligible figures by comparison to CME, with open interest most recently hitting $69,000.
Bitcoin options open interest comparison. Source: Skew/ Twitter
Focus on the allure of BTC derivatives
As Cointelegraph reported, expectations are high that derivatives trading will propel Bitcoin further into the public spotlight in the near future.
A report from Coin Metrics this week highlighted the ecosystem as the main contributor to overall Bitcoin trading volume.
“Similar to other asset classes, derivatives markets in Bitcoin are several times larger compared to spot markets,” it stated.
“If reported volumes are to be believed, gaining exposure through derivatives markets may be the most efficient path.”