chicago mercantile exchange CME, the world’s largest futures exchange, plans to offer spot Bitcoin trading on its platform, according to the Financial Times. report.
The move will provide large hedge funds and institutional investors with a regulated venue to trade Bitcoin.
NEW: 🇺🇸CME Group, the world’s largest futures exchange, plans to launch #bitcoin transaction.
Wall Street is here 🙌 pic.twitter.com/fFdX42Gr3f
— Bitcoin Magazine (@BitcoinMagazine) May 16, 2024
CME is already the world leader in Bitcoin futures trading. By adding Spot Bitcoin, we can offer our clients an integrated platform that includes both spot and derivatives markets.
This enables complex trading strategies that take advantage of the price difference between the two, such as arbitrage and basis trading.
Currently, most spot Bitcoin trading takes place on offshore exchanges like Binance. CME provides a regulated alternative and targets institutional investors who require rigorous due diligence and compliance standards.
The exchange has reportedly held discussions with traders who have expressed a strong interest in trading Bitcoin in a regulated environment.
The move comes as Wall Street ramps up Bitcoin offerings as demand soars. Several companies have already provided access to SEC-approved Bitcoin ETFs earlier this year. CME differentiates itself by enabling sophisticated trading strategies that go beyond simple directional bets.
Institutional funds tend to use CME over platforms like Coinbase due to existing relationships. The transparency and trust in CME’s decades-long track record outweighs Bitcoin’s lack of professionalism.
By leveraging extraordinary demand from institutional investors, CME is able to significantly expand its exposure to Bitcoin, with familiar and regulated vehicles such as hedge funds, family offices, and pension funds investing in Bitcoin. You can satisfy your desire for access.
