The Chicago Mercantile Exchange Group (CME) has expressed belief in the Bitcoin Futures market despite the recent price tank. The Illinois-based derivatives exchange is heavily interested in the capabilities of the cryptocurrency and has tweeted in support of the premier cryptocurrency of the world.
Despite the pullback in bitcoin prices, customer interest in CME Bitcoin futures remained strong during Q3 with daily OI of over 4.6K contracts, up 61% vs Q3 2018. https://t.co/MiMqZ52JmS pic.twitter.com/WiQBA0mK0o
— CMEGroup (@CMEGroup) October 9, 2019
In a rather unusual move, the CMG took to the microblogging site to express hope for the future of the cryptocurrency. The exchange itself offers Bitcoin futures trading and reported in the same tweet that “CME Bitcoin futures remained strong during Q3 2019, with daily open interest (OI) of over 4,600 contracts, up 61% vs Q3 2018”.
Open interest is a financial term for futures contracts that have not been settled. Bitcoin futures contracts rose to 4,629 contracts up from 2873 during the last quarter despite the recent price tank in the price index. Over 34,000 contracts were traded in May alone which are worth USD 1.3 billion, sizeable figures considering the nascent nature of the Bitcoin futures market.
However, despite the positive attitude, CME has categorically negated the impression that it wants to launch physically settled Bitcoin futures contracts. The market is instead only offering contracts settled in cash.
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