CME Group’s Bitcoin-based futures trading is up 41 percent in quarter three, and CBOE Global is reporting similar results. Meanwhile, the cryptocurrency markets are still hanging on the unanswered promise of a bitcoin-based exchange traded fund (ETF).
Bitcoin Futures Performance
CME Group tweeted its latest results on October 17, 2018 saying:
In Q3, Bitcoin futures average daily volume rose 41% and open interest was up 19% over Q2 . Learn how market participants are using BTC to manage risk in changing markets. https://t.co/Yt41SzsHku pic.twitter.com/Kw4OX0QaKT
— CMEGroup (@CMEGroup) October 17, 2018
The reassuring report, came after CME had reported lower trading volume with some significant dips. Average daily volume for CME Group is now upwards of 5,000 contracts for the third quarter of 2018, increasing from 3,577 contracts in quarter two, and 1,854 in the first quarter. Open interest is also higher than in quarter one or quarter two, at 2,900 contracts in the third quarter.
CBOE Group, who joined CME Group in the Bitcoin futures market in December 2017, is reporting similar results. CBOE Group’s trading has also increased in quarter three to 5,800 contracts, with open interest at around 1,750 contracts.
Despite CME Group’s success with bitcoin-based futures trading, the company is not currently planning to offer futures on any other cryptocurrency. CME Group’s CEO Terry Duffy told Bloomberg in July 2018 that due to the controversy surrounding the bitcoin-based futures launch, he was in no rush to add products based on other cryptocurrencies.
“I will take a wait and see approach with Bitcoin for now,” said Duffy.
As yet, that hasn’t changed, but if CME Group’s success with Bitcoin futures continues, who knows?
Suggested Reading : Learn more about Bitcoin in our beginner’s guide.
No Bitcoin-Based ETF – Yet
The investment product everyone is really waiting for is the so-called “holy grail”: a Bitcoin-based ETF. Yet the U.S Securities and Exchange Commission (SEC) has thus far refused to approve an ETF, citing concerns over Bitcoin price volatility and the possibility of market manipulation.
According to reports, nine Bitcoin-based ETF applications from financial organizations are pending with the U.S SEC. Its decision on these nine is due by November 5, 2018.
CNBC Crypto Trader host and analyst Ran Neuner believes Bitcoin prices are about to explode over the expectation of a Bitcoin-based ETF. Neuner tweeted:
I just bought Bitcoin for my parents. It’s too obvious that it’s about to explode…
— Ran NeuNer (@cryptomanran) October 7, 2018
Elsewhere Dan Morehead, CEO, and founder of Pantera Capital says he thinks an ETF “is years away.”
It’s a dead cert that a Bitcoin-based ETF approval would catapult Bitcoin and probably other cryptocurrency prices higher, what’s not certain yet is when that might happen.