The Chicago-based crypto exchange, Chicago Mercantile Exchange Group (CME)<a href="https://twitter.com/CMEGroup/status/1181954909782061056"> said</a> its Bitcoin futures contracts grew in popularity last quarter. The group tweeted that customer interest remained strong during Q3 2019 with daily open interest (OI) of approximately 4,600 contracts. The figure is up by 61 percent a year later due to growing demand from institutional investors.

Moreover, despite the quarter’s 25 percent drop in Bitcoin price; the open interest in Futures contracts was down just 1 percent from second-quarter levels. Open interest is the number of outstanding derivative contracts not settled yet. According to CME, this figure rose to 4,629 contracts from 2,873 in Q3 of 2018.
<h2>Traders and Miners all Interested in CME Bitcoin Futures Contracts</h2>
In addition, recently the CME Group announced it is adding options to its Bitcoin futures contracts during the first quarter year 2020. Only regulatory review and approval is pending. At the time, CME Group global head of equity index and alternative investment products, Tim McCourt said:

<em>"<strong>Based on increasing client demand and robust growth in our Bitcoin futures markets, we believe the launch of options will provide our clients with additional flexibility to trade and hedge their bitcoin price risk."</strong></em>

Additionally, McCourt claimed trading had picked up for the Bitcoin futures. May was a record month in futures trading for CME as 34,000 futures contracts worth $1.3 billion and equivalent to 170,000 BTC, were traded. Institutional interest in CME Bitcoin futures rose in the summer of 2019. 56 large interest holders were reported back in July.

On the same token, McCourt added he expects interest in Bitcoin futures from miners as well. The miners will be seeking more precise exposures. He said:

<strong><em>“While futures give you a one-for-one exposure […] an option gives you varying strike-price levels and can give you either downside protection or upside exposure at a fraction of the underlying price.”</em></strong>
<h2>Bottom Line</h2>
In conclusion, CME faces direct competition from the Intercontinental Exchange-backed<a href="https://www.cryptoknowmics.com/crypto/bakkt-futures-attracted-only-usd-5-million-in-its-first-week/"> BAKKT</a> startup. The new entity launched a new Bitcoin futures contract recently in September. It aims to attract institutional investors who might want to gamble on Bitcoin.

CME: Bitcoin Futures Attracting Interest from Big Investors

The Chicago-based crypto exchange, Chicago Mercantile Exchange Group (CME) said its Bitcoin futures contracts grew in popularity last ...%

My first love is music – then goes writing. I don’t write fiction, I analyze bulls and bears in markets. I call it my jungle, the digital jungle of crypto and chains.

CME: Bitcoin Futures Attracting Interest from Big Investors

Top Picks