Bitcoin futures volume hits an all-time high
Bitcoin futures reached a record volume level this week by peaking near $670 million between US exchanges CME and CBOE.
On Chicago’s CME exchange, trading saw more than 11,000 contracts change hands.
The trades are worth the equivalent of 56,010 BTC.
Those contracts equate to over $497 million in single-day volume, according to CME’s BRR (Bitcoin Reference Rate) for April 25.
Of course, the dollar value of those contracts will most likely diverge slightly from that figure somewhat.
Values will fluctuate throughout the trading session.
#Bitcoin futures liquidity continues to build. A record of more than 11,000 contracts (56,010 equivalent bitcoin) traded Wednesday. April average daily volume is currently 3,716 contracts, up 44% vs. March. https://t.co/s3opy7w6IB #BTC pic.twitter.com/AabNTh9CwQ
— CMEGroup (@CMEGroup) April 26, 2018
Due to the bump in volume, CME actually ranked as one of the world’s ten largest cryptocurrency exchanges on Wednesday.
This ranking is more extensive than most spot trading platforms that allow a significant amount of altcoin trading pairs.
This is particularly impressive when you consider CME only offers trading services during specific business hours.
Unlike spot exchanges, that operate 24/7.
Bitcoin futures trading is rising
Since first listing Bitcoin futures trading in December, the exchange says average daily volume has increased by 250 percent.
This increase indicates that the spike is more than just a flash in the pan.
The average daily volume in April is 3,716 contracts, that equates to 18,580 BTC.
Since March, this volume is a 44 percent increase.
The rise in trading isn’t unique to CME, however.
The first US platform to list Bitcoin futures, another Chicago-based exchange, CBOE, is also reporting similar numbers.
CBOE saw trades of 19,000 contracts (each worth 1 BTC) on its platform on Wednesday.
These contracts roughly amount to around $168 million, according to the Bitcoin Reference Rate.
Not only was this a record for CBOE, but this number was three times the exchange’s average daily volume for this product.
$XBT #BitcoinFutures highest daily volume – 3X normal ADV, @kpdavitt13 details high volume & ranges in the underlying, #Cryptocurrency trending higher: #bitcoincash $BCH, $EOS market cap https://t.co/3ZUS3ZwPxT #crypto
— Cboe (@CBOE) April 26, 2018
Crucially, CBOE notes that this record volume correlates with neither a contract expiration date nor extraordinary price volatility.
Typically, these reasons can have a relationship with volume rises, as with previous spikes.
Futures are principally traded by institutional investors, though not exclusively.
Rising volumes for these products may be a sign that institutions are taking a more active role in crypto assets.
According to Abra CEO Bill Barhydt, “all hell will break loose” when institutional investors start investing heavily in cryptocurrency.
Numerous industry insiders believe these investors will drive Bitcoin values to record levels.