CME Bitcoin Futures Volume Finally Upticks Since March Crash, Is Institutional Investment Flocking Back?


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Daily trading volumes on CME Bitcoin Futures is on the rise as the price of the top crypto breached $7,300 on Tuesday. While the market waits for a momentous signal on the price movement, growth in CME Bitcoin volumes may signal a possible oncoming bullish run in the coming days.

The Chicago Mercantile Exchange (CME) is seeing increased interest in its cash-settled Bitcoin (BTC) futures as the market rises from the ashes of “Black Thursday”. As of Tuesday, Apr. 7, the total trading volume of CME almost broke the $400 million mark setting a bullish feel to the market. This follows a devastating two weeks resulting from the “Black Thursday” crash that induced a 52% drop in BTC’s value.

CME Bitcoin Futures volumes soar over 350%

Since March 12 – when the selloff ensued – the volumes of CME futures plummeted gradually from a monthly high of $545 million to a low ball figure of $84 million on the last day of the month. This huge disparity may be linked to the overall bearish sentiment of the market through March and the expiration of over 25,000 BTC contracts during the last Friday of each month.

Image: Skew Markets

April has started off promisingly on the CME trading volumes which witnessed a gargantuan soar in the first week of April. Starting off at a measly $88 million, a 4% rise from March closing volumes, BTC trading volume spiked over 350% in the first week of April.

The open interest, which is the total number of futures contracts held by market participants, also witnessed a spike from a monthly low of $127 million at the end of March to $189 million as of April 7.

Is institutional investment growing?

While CME Bitcoin Futures are synonymous with institutional investment growth, the current rise in trading volumes may not give a clear picture of the growth spot market. Remember, CME Futures are quite different from BitMEX or Binance perpetual futures as they are settled monthly. The current rise in trading volumes may be as a result of new positions being taken as March contracts expired.