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spot Bitcoin ETF will bring fresh money to the market, but it will not change a fundamental reality: Bitcoin liquidity is declining.
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Futures will be the best crypto game in town even after a Bitcoin spot ETFOPINION
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The Chicago Mercantile Exchange (CME) has long been the home of crypto for traditional finance investors, and this is unlikely to change — even with the approval of a Bitcoin spot ETF.
Activity on the CME has expanded significantly over the past 12 months. The CME now sees more Bitcoin
BTC
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$38,123
futures trading than the world’s biggest crypto exchange, Binance. Open BTC interest on the CME now makes up 24.7% of the entire market, making it the top Bitcoin futures trading venue in the world
While some of this activity is almost certainly linked to anticipation of approval for a spot ETF, the launch of one or more will not lead to a reduction of activity in the futures market. In fact, futures trading is likely to expand rather than contract when the SEC finally gives BlackRock et. al. the green light.