Chicago Mercantile Exchange Looks to Bitcoin Trading to Boost Market Demand: Report

The Chicago Mercantile Exchange (CME) is reportedly planning to launch a Bitcoin trading platform this year, hoping to capitalize on Bitcoin demand among Wall Street fund managers.

The Financial Times reported on Thursday that CME is in talks with crypto traders about creating a private market for Bitcoin trading.

The program is not ready yet. But CME’s Bitcoin trading plan could mean Wall Street giants in the crypto space continue to backpedal. This follows the SEC’s green light for Spot Bitcoin exchange trading in January.

plans to offer a Bitcoin trading platform through EBS, according to the FT. This is a Swiss currency trading site known for its strict regulations on real estate trading and storage.

A spokesperson for CME Group declined to comment.

Chicago Mercantile Exchange locations where fuel ‘basics’ are sold

FT said the addition of Bitcoin trading to CME’s existing trading platform will open the door for investors to easily engage in ‘core trading’.

Fundamental trading involves borrowing money to sell futures contracts and at the same time purchasing the underlying Bitcoin in order to profit from the small price difference between them. These strategies have become a part of the US stock market, with most available on the CME platform.

CME dethrones Binance as a financial institution

CME has become one of the largest Bitcoin futures markets in the world after Binance. This increase represents another shift in interest from institutional investors looking to capitalize on Bitcoin’s volatility.

2020 Bitwise research finds that the CME Bitcoin futures market is outperforming the market.

To promote transparency and trust in financial markets, CME Group has partnered with CF Benchmarks. Together they developed benchmarks and price indices for popular cryptocurrencies such as Bitcoin and Ether. This partnership ensures that values ​​are represented clearly and reliably.