The Chicago Mercantile Exchange (CME) on Thursday replaced Binance as the largest Bitcoin futures exchange, according to CoinGlass data. CME's open interest (OI) of approximately $4.07 billion has increased by 4% in the last 24 hours, reaching a market share of 24.7%.
Chicago Mercantile Exchange Overtakes Binance in Futures Trading
Meanwhile, Binance's OI fell 7.8% to $3.8 billion during the same period. While CME offers trading in traditional futures contracts with predetermined expiries, Binance and other exchanges offer traditional futures and perpetual contracts or futures with no maturity.
CME's rise to the top has been gradual this year and is a significant development as it highlights growing demand from institutional market participants to buy and sell the largest and oldest crypto asset.
An article published by Bitwise Asset Management in 2020 stated that the CME Bitcoin futures market leads the spot market in a consistent and statistically significant manner.
According to analysts, CME's rise to the top spot highlights the growing institutional demand for Bitcoin as it is used almost exclusively by large traditional financial institutions.
*Investment advice