In recent years, future contracts on Bitcoin have been gaining in importance for the crypto market. Currently, they constitute the majority of the volume of transactions carried out with crypto-active related instruments. And within this sector, there is a group of exchanges that maintain the leadership. One of the best known, CME Group, is the third largest futures exchange on Bitcoin.
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The importance of future contracts on Bitcoin
Many people, when they start to participate in the crypt market, think that the only way to trade cryptosystems is by buying and selling them directly on an exchange. And although this is an important method to generate profits within the crypt world, the truth is that it is not by far the only or the most efficient one.
Thus, there are many different instruments with which you can start investing in cryptomonies. They range from leveraged tokens, to future contracts on a virtual currency. Recently, cryptoactive futures have become very important for the market. Allowing thousands of investors to participate in the market, without the need to acquire and manage crypto currencies directly.
Because, unlike buying and selling crypto currencies directly in an exchange. With the Bitcoin future contracts offered by companies like Binance or CME Group, what we acquire is a promise to buy or sell a crypto at a certain time in the future. In most cases, we never see the crypto-currency in question and only exchange the money according to its market value.
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CME Group Futures
Thanks to this, future contracts on Bitcoin Cycle are one of the favorite products for investors. Making this sector of the market extremely competitive, with dozens of companies offering their own BTC futures contracts. Including several of the world’s largest exchange platforms, such as Binance and CME Group.
Thus, as of Thursday this week, open positions on the CME Group futures exchange were worth $800 million. That’s an increase of more than 120% since the July 2019 measurement, when CME’s open Bitcoin futures barely reached $364 million in total.
This would make CME Group the third largest exchange of Bitcoin futures contracts in the world. Representing 15% of all open positions in this type of instrument. It is only surpassed by the OKEx and Binance exchanges, with 23% and 18.6% of the market respectively.
This would be a major change in the landscape of the Bitcoin futures market. Only a month ago, CME Group was the fifth largest exchange in this type of instrument, with only 12% of the market. However, since then the company has improved its position, thanks to the momentum generated by the growing interest of institutional investors in cryptosystems.