According to the Financial Times, the world’s largest futures exchange, the Chicago Mercantile Exchange (CME Group), is planning to launch Bitcoin trading. The goal is to capitalize on the increasing demand from Wall Street fund managers for exposure to the cryptocurrency sector this year. According to three sources familiar with the matter, CME has been in discussions with traders who are interested in buying and selling cryptocurrencies on regulated markets.
This yet-to-be-finalized plan would represent a further invasion into the digital asset space by major Wall Street institutions, following the approval of Bitcoin spot ETFs by the U.S. Securities and Exchange Commission (SEC) in January.
CME already offers Bitcoin futures trading, and introducing Bitcoin spot trading on its platform would make it easier for investors to engage in so-called basis trading.
Catering primarily to hedge funds and proprietary trading firms, CME has around 26,000 open futures contracts on its Chicago market, with a value of approximately $8.5 billion, more than double the amount from a year ago.
Sources indicate that the company’s potential spot trading business would be conducted through the EBS currency trading platform in Switzerland, which has strict regulations on the trading and storage of cryptocurrencies.
