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⦿CME Group, the world’s largest futures exchange, plans to launch bitcoin trading.
⦿Aims to capitalize on Wall Street's surging demand for cryptocurrency exposure.
⦿CME has been discussing with traders interested in a regulated bitcoin marketplace.
⦿Plan not yet finalized; follows SEC’s approval of bitcoin-related stock market funds.
⦿CME declined to comment.
⦿CME already hosts bitcoin futures trading; spot bitcoin trading would facilitate basis trades.
⦿Basis trading involves borrowing money to sell futures while buying the underlying asset.
⦿Wall Street institutions are increasingly adopting bitcoin, influenced by its price rebound and regulatory crackdowns on illegal activity.
⦿Despite a recent price drop, bitcoin ETFs are the fastest-growing ETFs.
⦿Large investors, including hedge funds and pension funds, have invested over $10 billion in bitcoin-related assets managed by firms like BlackRock, Fidelity, and Ark.
⦿CME has surpassed Binance as the largest bitcoin futures market, with $8.5 billion in open positions.
⦿Potential spot trading business might operate through EBS in Switzerland.
⦿Traditional exchanges have mixed success in spot cryptocurrency trading.
⦿A crypto executive questioned CME's ability to gain significant market share if operating in two locations.
⦿Large regulated exchanges are becoming more comfortable with digital asset trading infrastructure, potentially accepting crypto-related collateral soon.
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