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Binance Overtaken in Largest Share of Bitcoin Futures Open Interest
By AZC News | 5 hours ago
Analysts delve into a noteworthy 'flippening' scenario, witnessing the transition of Bitcoin futures open interest from Binance to the global derivatives marketplace, CME.
CME has surpassed Binance in securing the predominant share of Bitcoin futures open interest, marking a notable shift in the landscape after Bitcoin's resurgence beyond the $37,000 threshold, a level not seen in over 18 months.
Analysts have observed this intriguing 'flippening,' wherein the traditional derivatives marketplace heavyweight, Chicago Mercantile Exchange (CME), has outpaced Binance, the global cryptocurrency exchange, in terms of Bitcoin futures open interest.
Open interest, a crucial metric in futures and options markets, quantifies the total number of outstanding contracts held by traders at any given moment. It hinges on the disparity between contracts held by buyers (longs) and those held by sellers (shorts).
This concern has been a sticking point, causing the SEC to withhold approval for numerous spot Bitcoin ETF applications. Notably, the regulator informed major players like BlackRock and Fidelity that their filings were deemed "inadequate" due to the absence of crucial declarations regarding the markets underpinning the valuation of Bitcoin ETFs.
In its revised submission to the SEC, CBOE emphasized its commitment to strengthening mechanisms for detecting, investigating, and preventing fraud and market manipulation related to shares in the proposed Wise Origin Bitcoin Trust.
The exchange stated its anticipation of entering into a surveillance-sharing agreement with Coinbase, a prominent operator of a United States-based spot trading platform for Bitcoin, which constitutes a significant portion of both US-based and USD-denominated Bitcoin trading.