Source: Cailian
according to media reportskingscasinopokerRiding on this year's cryptocurrency investment boom, Chicago Mercantile Exchange Group (CME) is planning to launch spot trading in bitcoin. However, this plan has not yet been finalized.
According to people familiar with the matter, CME has been in discussions with dealers who want to buy and sell cryptocurrencies in a regulated market. This may mark a further foray into the digital asset space by major financial institutions on Wall Street following the U.S. Securities and Exchange Commission (SEC) approval of the Bitcoin Spot ETF in January this year.
As early as the end of 2017, CME launched Bitcoin futures contract trading. If spot trading is introduced again, it will make it easier for investors to conduct so-called basis trading and provide customers with a comprehensive platform that includes spot and derivatives markets.
As Bitcoin rebounded sharply from its 2022 lows and hit a record high earlier this year, investors 'growing acceptance of Bitcoin as a tradable asset and regulators' crackdown on illegal market activity, some of the world's largest financial institutions have turned from skeptics to supporters.
Although Bitcoin prices hit 7.5 percent since MarchkingscasinopokerIt has fallen by a fifth since its peak at $.30,000, but the Bitcoin Spot ETF has become the fastest-growing ETF product ever.
The day before, driven by positive results such as the Federal Reserve's interest rate cut expectations, Bitcoin prices surged by more than 7.5%, setting the largest one-day increase in 14 months. The Bitcoin Spot ETF received a large inflow of funds.
Oppenheimer analyst Owen Lau said: "The U.S. CPI data in April was slightly lower than expected, increasing the possibility of a rate cut, which remains an important factor in Bitcoin prices. After spot ETFs and the halving of benefits, the next major catalyst is the Federal Reserve's interest rate cut. Until we see a clearer path to rate cuts, Bitcoin may remain range-bound and fluctuate with macro data."
In January this year, the U.S. Securities and Exchange Commission approved 11 Bitcoin spot ETFs for the first time, which was hailed by the cryptocurrency community as a game-changer, allowing mainstream investors to buy and sell Bitcoin as easily as stocks and mutual funds.
Currently, most bitcoin spot transactions occur on offshore exchanges like Binance. CME is expected to provide a regulated alternative that targets institutional investors who require strict due diligence and compliance standards.
A crypto trading executive said that the biggest benefit of CME's move is that as large exchanges become familiar with and adapt to the digital asset trading infrastructure, the cryptocurrency market may become more mature and standardized, and it also indicates that the exchange may provide more financial services related to cryptocurrency.