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Chicago Mercantile Exchange Eyes Bitcoin Trading to Seize Growing Market Demand: Report

Shalini Nagarajan
Last updated: | 1 min read
Chicago Mercantile Exchange

The Chicago Mercantile Exchange (CME) is reportedly planning to launch Bitcoin trading, seeking to capitalize on the swelling demand for Bitcoin among Wall Street fund managers this year.

The Financial Times reported Thursday that the CME has been in talks with crypto traders about offering a regulated marketplace for buying and selling Bitcoin.

Plans are not yet finalized. But the CME’s potential Bitcoin trading plan signifies a continued push from Wall Street giants into the crypto space. This follows the SEC’s green light in January for Spot Bitcoin exchange-traded funds.

According to the FT, it plans to offer its potential spot Bitcoin trading business through EBS. This is a Swiss currency trading platform known for its strict regulations on crypto asset trading and storage.

A CME Group spokesperson declined to comment on the matter.

Chicago Mercantile Exchange Spot Trading To Fuel ‘Basis Trades’


The addition of spot Bitcoin trading to the CME’s existing Bitcoin futures offerings would open doors for investors to easily execute ‘basis trades,” according to the FT.

Basis trades involve borrowing money to sell futures contracts while simultaneously buying the underlying Bitcoin, aiming to profit from the small price difference between them. This strategy is already a staple in the US Treasury market, with a significant portion happening on CME platforms.

CME Dethrones Binance as Institutions Dive In


CME has grown to become one of the world’s leading Bitcoin futures market, dethroning Binance. This surge reflects a renewed wave of institutional investor interest seeking to capitalize on Bitcoin’s volatility.

A 2020 Bitwise Asset Management study found that the CME Bitcoin futures market consistently outpaces the spot market.

In a move to boost transparency and trust in cryptocurrency trading, CME Group has joined forces with CF Benchmarks. Together, they’ve developed standardized reference rates and spot price indices for popular cryptocurrencies like Bitcoin and Ether. This collaboration provides a clear and reliable picture of cryptocurrency values.