According to the CME Group report, trading in cryptocurrency derivatives is gaining momentum in the second quarter of 2018 and Bitcoin futures are confidently gaining a foothold in the crypto market.
CME Group has published data showing that the average daily volume (ADV) of BTC futures contracts increased by 93 percent in the second quarter of 2018. Also during this period, the derivatives trading giant showed that the open interest rate OI (open contracts) in Bitcoin futures increased by 58 percent.
The importance of this increase in BTC ADV futures is that it confirms the strength Bitcoin as an asset class. At a time when Bitcoin has lost a significant portion of its value, the fact that the market recorded a 93 percent quarter-to-quarter gain proves the market's acceptance of Bitcoin as a resilient and reliable asset class with good future prospects.
The Open Interest (OI) rate refers to the number of open contracts on BTC futures. The 58% jump in OI also indicates a high level of market interest in trading BTC futures as many contracts remain open. Investors will undoubtedly be keeping a close eye on the Bitcoin futures market as OI's 58% rise from Q1 to Q2 shows that the volume of funds entering the market is growing at a rapid pace.
OI is generally accepted by investors as a good indicator for future market trends.
General and sustained market interest in this asset class means that more financial institutions and investors can now become involved in the crypto market. Already, a number of companies have publicly announced that they are reconsidering their negative stance on Bitcoin.
At the beginning of the year, NASDAQ CEO Aden Friedman noted that trading in Bitcoin futures contracts was included in the plans of the second-largest exchange in the world. BTCManager also previously reported in July 2018 that BlackRock, the world's largest exchange-traded fund (ETF), was reviewing its historical skepticism of crypto investing and the company was considering investing in Bitcoin futures.
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