Open interest in the CME bitcoin options market grew by 1,000% over the month
Investor interest in Bitcoin options of the Chicago Mercantile Exchange (CME) reached record levels in the days after the halving, CoinDesk notes.
On Monday, when the miner reward was reduced from 12.5 BTC to 6.25 BTC, CME bitcoin options trading volume reached $ 17 million, surpassing the previous high of $ 9.9 million, recorded on May 6. From that time on, he continued to grow.
On Tuesday, CME recorded a new record of $ 30 million, renewing it again the next day for about $ 40 million. On Thursday, volumes were $ 36 million, up 2,000% from $ 1.7 million last week..
Open interest in the CME bitcoin options market has grown by more than 270% over the past week. The indicator also updated records daily this week and on Thursday at the close of trading was $ 142 million. Since the beginning of the month, growth has exceeded 1,000%.
According to the CEO of the crypto-analytical platform Skew, Emmanuel Goo, the growth in volumes and active positions reflects an increase in the participation of institutional investors in cryptocurrency trading. Often, these investors use options as a tool to hedge their own positions in the spot or futures markets. For example, some firms with long positions took put options to protect themselves from the risks of a sudden market drop amid halving.
In recent days, investors have also had reason to use hedging instruments under the influence of increased market volatility. Bitcoin fell from $ 10,000 to $ 8,000 last weekend, but on Wednesday it almost completely recovered the fall.
While activity on the CME has increased this week, the exchange makes a small contribution to the overall volume of the Bitcoin options market. Over 70% of the volume still comes from Panama’s Deribit platform.
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