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CME Displaces Binance as the Top Bitcoin Futures Trading Platform

source-logo  coinedition.com 10 November 2023 22:59, UTC

Binance CEO Changpeng Zhao has acknowledged the rise to the top of the Chicago Mercantile Exchange (CME) as the leading platform for Bitcoin Futures trading. Zhao considers the development an indication of U.S. institutions moving into crypto and questions how other countries may respond.

US institutions are moving into crypto. What about your country? pic.twitter.com/euNg4j42gg

— CZ 🔶 Binance (@cz_binance) November 10, 2023

Zhao posted on X (formerly Twitter) following reports that the CME had become the number one trading platform for Bitcoin Futures, according to data from Coinglass. On Thursday, the platform overtook Binance to claim the top position for the first time in two years.

According to Coinglass data, CME established its top position with an Open Interest (OI) of about $4.07 billion after rallying 4% in 24 hours. CME claimed 24.7% of the market share by reaching that value. Meanwhile, Binance’s OI stood at $3.8 billion to slip into second position, after dropping 7.8%.

CME is notable for serving traditional institutions. Hence, the impression that its rise to the top indicates an influx of institutional investors into the Bitcoin market. The platform offers trading in traditional futures contracts with pre-determined expiry. That differs from the kind of service Binance and other exchanges offer, which include conventional futures and perpetual contracts or futures with no expiry.

According to reports, one of the factors behind the change in rankings is the recent leverage flush-out triggered by wild price swings. That saw the aggregate Bitcoin open interest drop $2 billion from $12 billion. Binance traders have reportedly felt the impact of this drop more significantly, compared with traders on the CME.

On Thursday, Bitcoin surged to an 18-month high of $37,978 before dropping sharply to below $36,000, according to data from TradingView. The drop followed reports of a filing by “iShares Ethereum Trust,” a BlackRock-owned entity, for an Ethereum ETF.

Bitcoin traded for $36,486 at the time of writing as the flagship crypto attempts to resume in the upward direction.

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