Bitcoin [BTC]: CME Group posts losses in Q1 of 2019 as Bitcoin [BTC] futures plan continue unhindered

The involvement of institutional investors and organizations in the cryptocurrency space has catalyzed and spurred mainstream adoption. One such organization is the CME Group, which was recently in the news after it released its Q1 report. The report stated that the company suffered a drop in first quarter earnings, partly due to the volatility in the markets towards the end of 2018.

The report stated that the total income fell to $496.9 million, from a peak of $598.8 million it held during the last quarter. The report also touched upon the fact that CME shares lost about 4.9 percent, since the start of 2019 as compared to the 17.5 percent gain among S&P 500 markets. The earning report elucidated that profit margins had decreased because of increased spending in the last quarter.

CME was in the news recently after it assured users that there were no changes to its proposed Bitcoin futures contract. Doubt in the market rose because CBOE, CME’s closest competitor, announced that they would be reconsidering their futures project. In a notice to all its investors, CME said,

“CFE is assessing its approach with respect to how it plans to continue to offer digital asset derivatives for trading. While it considers its next steps, CFE does not currently intend to list additional XBT futures contracts for trading.”

Market analysis showed that CME’s better performance, when compared to CBOE, may have been because of the difference in approach, as well as treatment of the product. Lanre Sarumi, Chief Executive Officer of Level Trading Field, a crypto asset derivative exchange, stated previously,

“Connecting to both CME and Cboe is expensive. If you are already trading other products on an exchange, then there is no new cost. If not, you must pay for connectivity, software license, market data, cross connects etc.  — all that just to trade one new product?”

The post Bitcoin [BTC]: CME Group posts losses in Q1 of 2019 as Bitcoin [BTC] futures plan continue unhindered appeared first on AMBCrypto.