In recent years, futures contracts on Bitcoin have been acquiring fundamental importance for the crypto market. Currently constituting the majority of the volume of transactions carried out with instruments related to crypto assets. And within this sector, there is a group of exchanges that maintain the leadership. Making itself known today that one of the best known, CME Group, is the third largest Bitcoin futures exchange.
The importance of futures contracts on Bitcoin
Many people, when they start to participate in the crypto market, think that the only way to trade cryptocurrencies is by buying and selling them directly on an exchange. And although this is an important method to generate profits within the crypto world, the truth is that it is neither by far the only nor the most efficient.
Thus, there are many different instruments with which you can start investing in cryptocurrencies. Going from leveraged tokens, to future contracts on a virtual currency. Cryptoactive futures have been gaining enormous importance for the market in recent times. Allowing thousands of investors to participate in it, without the need to acquire and manage cryptocurrencies directly.
And it is that, unlike the purchase and sale of cryptocurrencies directly in an exchange. With future contracts on Bitcoin offered by companies like Binance or CME Group, what we acquire is a promise to buy or sell a crypto asset at a certain time in the future. In most cases, never seeing the cryptocurrency in question, only the money being exchanged according to its market value.
CME Group futures
Thanks to this, futures contracts on Bitcoin 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 largest exchange platforms in the world, such as Binance and CME Group.
Thus, as of Thursday of this week, the open positions on the CME Group futures exchange were equivalent to 800 million dollars. An increase of more than 120% from the measurement made in July 2019, when the Bitcoin futures opened in CME barely reached the figure of 364 million dollars in total.
With this, CME Group would rank as the third largest exchange for Bitcoin futures contracts in the world. Representing 15% of all open positions in this type of instrument. Being 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. Well, just a month ago, CME Group ranked fifth among exchanges for 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 cryptocurrencies.