Bitcoin Futures Don’t Cause Market Downturn — CME Group
Bitcoin futures could not in any way impact on the decline of the crypto market volume this year. This opinion was expressed by Tim McCourt, the managing director of the Chicago Mercantile Exchange (CME), during the panel discussion at Consensus Singapore 2018, CoinDesk reports.
Futures of the first cryptocurrency represent a small segment of the market. Moreover, this market is growing thanks to a high demand, especially in terms of trading volumes in Asian markets, McCourt stated.
According to his findings, booming trade on Asian exchanges seriously affects the futures' price prior to the opening of the American market. Up to 40% of the assets trading is done outside the United States, and a bit more than a half of it accounts for the Asian market. In Japan, the trading volume of bitcoin derivatives increased from $2 million in 2014 to $543 billion in 2017.
Don Wilson, the founder of the DRW trading company, is of the same opinion. Based on data from the CME and the Chicago Board Options Exchange (CBOE), he stated that the trading volume of bitcoin derivatives in Asian markets is approaching the level of the United States.
CME Group provides an opportunity to trade bitcoin futures due to a great demand for this type of valuable assets from market participants wishing to trade crypto products on a regulated exchange, Tim McCourt added. At the end of July, the CME traders finalized 12,878 bitcoin futures contracts within one day.
As previously reported, CBOE can launch ether futures in the near future.