Bitcoin Futures occupy the second spot as the most heavily traded asset on CME when the assets are measured by the volume/open interest ratio. Bitcoin Futures have a volume/open interest ratio of 303%, which is higher than the others except for the E-mini Dow ($5) Future that recorded 333%.
Bitcoin Future’s Volume/Open Interest Ratio High Despite Low Trading Volumes
Alex Kruger, a cryptocurrency technical analyst, posted an image of the performance of CME assets for May 27, 2019. According to the list, Bitcoin Futures was the second most heavily traded asset on the platform due to its high volume/open interest ratio.
Bitcoin is the second most heavily traded asset at the CME when measured by the volume / open interest ratio. In other words, bitcoin is an asset very actively traded throughout the day. pic.twitter.com/FelDERZHMb
— Alex Krüger (@krugermacro) June 2, 2019
The average volume of Bitcoin Futures was 15,016 while its average open interest was 4,958, which gave the asset a volume/open interest ratio of 303%. Occupying the number one spot is the E-mini Dow ($5) Future which had a volume/open interest ratio of 333%.
Alex Kruger commented that:
“Bitcoin is the second most heavily traded asset at the CME when measured by the volume / open interest ratio. In other words, bitcoin is an asset very actively traded throughout the day.”
Despite its high volume/open interest ratio, Bitcoin Future had the lowest average volume and open interest amongst assets mentioned on the list. With an average volume of 15,000, Bitcoin Futures has a very low trading volume. Kruger pointed out that the average daily volumes in the US Dollar of Bitcoin Futures are relatively small compared to the other assets on the table.
CME and the CBOE were the first two firms to provide Bitcoin futures contracts after they launched their services towards the end of 2017. CME has recorded success with its Bitcoin futures market over the past few months.
This latest development comes a few weeks after the CME announced that the Bitcoin futures on its platform attained a new all-time high. The volume reached an all-time high of 33,700 contracts on May 13, at a time when the price of the leading cryptocurrency was soaring. The surge in Bitcoin futures to 33,700 on the platform was equivalent to 168,000 BTCs.
CME Bitcoin futures reached an all-time record high of 33.7K contracts on May 13 (168K equivalent bitcoin), up nearly 50% from the last record of 22.5K contracts on April 4. See how market participants are using $BTC to manage uncertainty: https://t.co/hDgraMj5pe pic.twitter.com/ct1xkjoJDF
— CMEGroup (@CMEGroup) May 13, 2019
The CME published its data sheet on May 28, showing that the average open interest on Bitcoin Futures hit a new all-time high of 5,190. The open interest in Bitcoin Futures has been growing as the price of the underlying asset rises. Bitcoin has been trading just above the $8,500 mark over the past few days as the crypto market continues its recovery since the start of the year.
CME’s Numbers Show Institutional Investors Are Interested in Bitcoin
The record numbers posted by the CME recently could signify that institutional investors are gaining more interest in the Bitcoin Futures market. According to Imran Aijazuddin, CME has recorded 432.5K contracts traded on its platform so far in the second quarter of 2019. The cryptocurrency investor added that the trading volumes on CME are authentic and shows the level of institutional interest in cryptocurrencies.
Massive trading volume on CME Bitcoin futures, with 432.5K contracts traded so far in Q2 – and we have 23 trading days left.
CME volumes are authentic and a great proxy for institutional interest. pic.twitter.com/yEQORmUw0A
— Imran Aijazuddin (@I_Aijazuddin) May 28, 2019