The Average Daily Volume of Bitcoin Futures on the Chicago Mercantile Exchange increased by a whopping 93 percent in the second quarter against the first quarter of 2018. The company disclosed this in a tweet yesterday, July 20.
Bitcoin futures average daily volume in Q2 grew 93% over previous quarter, while open interest surpassed 2,400 contracts, a 58% increase. Learn more about trading #Bitcoin futures: https://t.co/adjWVWXBPQ pic.twitter.com/UQWC3nGGrI
— CMEGroup (@CMEGroup) July 20, 2018
From the data released by CME, the average daily volume of bitcoin futures went up from 1,854 in the first quarter of the year to 3,577 in the second quarter. In the same vein, the rate of open interest (IO) grew from 1,523 in the first quarter to 2,405 in the second, representing an increase of 58 percent.
As the heightened interest in bitcoin and cryptocurrencies last year, CME launched its bitcoin futures trading. This launch on Dec. 17 came shortly after Chicago Board Options Exchange (CBOE) introduced its bitcoin futures trading the week before.
The announcements at the time further pushed up the price of bitcoin but shortly after, the price of Bitcoin [BTC] which had surged to an all-time high of almost $20,000 plummeted. In May, the Federal Reserve Bank of San Francisco attributed the bitcoin crash to the introduction of futures trading. According to its economic letter, the sudden increase in price followed by a plunge doesn’t appear to be a coincidence. This claim is, however debatable given that bitcoin has had similar price plunges in the past. A report by bitcoin.com showed that the latest crash is less severe than a previous crash that happened in 2014.
This increase in bitcoin futures daily average volume may encourage CME Group to consider futures trading for other cryptocurrencies like ether. The company had in May released an index for ether thereby raising speculations that they may soon introduce trading of ether futures contracts. Tim McCourt, the global head of equity products and alternative investments, said at the time that focus at CME was on the index.