CME sees strong demand for bitcoin mini contract volume with surprise 100k in first week of trading
Tuesday, the CME announced that volume in its Micro Bitcoin futures market had surpassed 100,000 contracts in less than a week of trading.
"We are pleased to see strong customer adoption and support for our new Micro Bitcoin futures contract early on," said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products, in a press release. "Together with our existing, full-sized Bitcoin futures, this new, smaller contract further strengthens our ability to help a broad array of clients – from institutions to sophisticated, active traders – to manage their bitcoin price risk."
According to the CME, the mini contract is one-tenth the price of bitcoin, which it said provides traders "an efficient, cost-effective way for traders to fine-tune their bitcoin exposure and enhance their trading strategies."
In comparison, CME data shows that gold futures had an average daily volume of 170,634 in April.
Several market analysts have said that growing demand for cryptocurrencies has impacted investor demand for the precious metal. In a recent interview with Kitco News, Chantelle Schieven, head of research at Murenbeeld & Co, said that according to her research, bitcoin demand had reduced gold market value by 2.5%.
However, activity and investor demand have picked up in the gold market as the price broke through $1,800 an ounce. Many analysts say it is only a matter of time before the precious metal retakes its 200-day moving average, which comes in around $1,850 an ounce.