Chicago Mercantile Exchange (CME) has become the second-largest bitcoin futures exchange by open interest. Second only to Binance, CME has jumped two places from the previous month’s ranking, representing a rise in institutional demand for futures contracts.
CME’s recent jump indicated its resemblance to its Q4 of 2020 ranking when Bitcoin’s four-fold institutional-driven rally to almost $40,000 drove the Exchange to secure the top position on the list.
According to derivatives research firm Skew, which was recently acquired by Coinbase, CME currently accounts for nearly 17% of the global futures open interest of $17.9 billion.
The exchange is moving up its rankings as Bitcoin attains mid-May levels, a situation akin to the previous year. Bitcoin has risen by more than 30% since September 29 to around $ 54,000 which has been running opposite from the current bearish phase of the global stock market.
CME’s annual premium has also risen to 15% for the first time in six months, again indicating a swelling demand from institutional investors.
Despite being under intense regulatory scrutiny, Binance has been outperforming other exchanges for months with an open interest of $4.1 billion. CME was successful in squeezing out Binance from the dominant position, but the latter quickly bounced back in Q1 of 2021.