The recent surge in the price of Bitcoin has not gone unnoticed by the cryptocurrency community, and now it seems as if Wall Street has also paid it some attention. This has been revealed by trading data on Bitcoin futures from two Chicago-based derivatives exchanges.
More specifically, the exchanges were the Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME), which are the only regulated exchanges that list Bitcoin futures in the US.
Mati Greenspan, a senior market analyst at the social investment network eToro, noted that this played a part in the latest Bitcoin rally.
Moreover, CME Group tweeted that Bitcoin futures had reached a record volume this Tuesday, with 12,787 contracts exchanged worth approximately 64,390 Bitcoin, or a whopping $530 million. In addition to this, Tuesday’s trading volume on CBOE is to have reached 7,138 contracts, in turn, worth 7,138 Bitcoin.
Bitcoin futures hit record volume of 12,878 contracts on Tuesday, equivalent to 64,390 bitcoins with a notional value of $530M. Learn more about #Bitcoin futures. https://t.co/AIsPztBU6V pic.twitter.com/7RIRL2qZ3A
— CMEGroup (@CMEGroup) July 25, 2018
All in all, this brought the total volume of US Bitcoin futures to 71,528 Bitcoin, or around $572 million – an undoubtedly substantial amount.
In the grand scheme of things, however, this is still a comparatively minuscule amount. In fact, CoinMarketCap reports that the global Bitcoin market saw a total trading volume in excess of $7.7 billion this Tuesday.
Mati Greenspan also suggested that the recent Bitcoin rally has primarily been fueled by traders in Japan and South Korea, stating that ”it seems clear that the rally is being led by East Asia”.
Nonetheless, the mere fact that the trade of US Bitcoin futures is increasing could suggest that institutional investors are beginning to make a substantial entry into the cryptocurrency industry.
It has previously been widely believed that institutional investors are awaiting an official go-ahead for Bitcoin exchange-traded funds from the US Securities and Exchange Commission before taking a more active investing role in relation to the cryptocurrency.
However, these significant volumes of traded Bitcoin futures indicate that some institutional investors are getting into the cryptocurrency sooner rather than later.
Nevertheless, increased volumes of Bitcoin futures contracts should not come as a surprise to avid readers of Toshi Times. We have previously reported on how the CME has seen a massive increase in the volume of Bitcoin futures this year.
These latest reports from the CBO and CME indicate that this trend is continuing, in all probability further fueled by the current positive market sentiment. Although significant, however, these volumes should only be an inkling compared to the potential influx of institutional capital that Bitcoin ETFs could unleash.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.