CME becomes second-largest Bitcoin futures exchange as open interest surges

The Chicago Mercantile Exchange (CME), a regulated derivatives exchange that lists Bitcoin (BTC) futures, now stands just behind Binance in terms of notional open interest to rank 2nd in the list of BTC futures exchanges.The CMEs open interest hit $3.58 billion on Oct. 30, pushing the managed derivatives exchange platform to jump two positions from the previous week. The CME surpassed Bybit and OKX with $2.6 billion and $1.78 billion in open interest, respectively, and is simply a few million far from Binances $3.9 billion.Bitcoin Futures Exchange rankings by open interest. Source: CoinglassThe standard Bitcoin futures agreement offered by CME is valued at five BTC, while the micro contract deserves a tenth of a Bitcoin. Continuous futures, instead of regular futures agreements, are the main focus of open interest in overseas exchanges, as they come without an expiration date and use the financing rate method to preserve their rate parity with the market price.Bitcoin open interest refers to the total number of outstanding Bitcoin futures or choices contracts in the market. It measures the amount of cash invested in Bitcoin derivatives at any given time. The open interest measures the capital streaming in and out of the marketplace. If more capital flows to Bitcoin futures, the open interest will increase. Nevertheless, if the capital drains, the open interest will decline. For this reason, increasing open interest shows a bullish sentiment, whereas a decreasing open interest indicates bearish sentiment.Related: Blockchain congestion and transaction lines really discourage wicked actors: StudyThe CMEs increasing open interest not just assisted the regulated futures exchange to climb up to the second area amongst futures crypto exchanges however likewise saw its cash-settled futures contracts go beyond 100,000 BTC in volume. The increasing interest of traders in the Bitcoin futures market has likewise moved the CME to obtain 25% of the Bitcoin futures market share.A majority portion of financial investment into CME futures has come via basic futures contracts, suggesting an increase of institutional interest as Bitcoin registered a massive double-digit surge in October, helping it reach a brand-new 1 year high above $35,000. Magazine: Deposit danger: What do crypto exchanges actually do with your money?