According to PANews, CME Group, the world's largest futures exchange, is planning to introduce Bitcoin spot trading in response to the increasing demand from Wall Street fund managers for the cryptocurrency industry this year. CME has been in discussions with traders who are interested in buying and selling Bitcoin in a regulated market. The plan is not yet finalized, but if implemented, it will further deepen the penetration of major Wall Street institutions into the digital asset field.

This move follows the approval by the U.S. Securities and Exchange Commission in January of this year for direct investment in Bitcoin stock funds. CME has become one of the biggest beneficiaries of this renewed institutional interest. Its market in Chicago currently has about 26,000 open positions, valued at approximately $8.5 billion, which is more than double that of a year ago.

You probably heard about #CME gap filling but have no clue what it is and why it is so important for #Bitcoin or the whole crypto market, Here is a thread to explain 🧵 👇
⭐⭐Repost will be appreciated ⭐⭐

⭐𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗖𝗠𝗘 𝗚𝗮𝗽 𝗶𝗻 𝗕𝗶𝘁𝗰𝗼𝗶𝗻 𝗧𝗿𝗮𝗱𝗶𝗻𝗴
Imagine you're watching your favorite show, and it goes off the air for a weekend, but when it comes back, the episode starts with a completely different scene than where it left off. That's kind of what happens with Bitcoin's price on the Chicago Mercantile Exchange (CME) when it creates what's known as a "CME gap."

⭐𝗪𝗵𝗮𝘁 𝗶𝘀 𝗮 𝗖𝗠𝗘 𝗚𝗮𝗽?
A CME gap in Bitcoin's chart occurs because while Bitcoin trades 24/7 on most platforms, the CME, where Bitcoin futures are traded, has specific trading hours and is closed on weekends. Here's how it works:
Friday Close: Let's say Bitcoin's price on CME closes at $30,000 on a Friday.
Weekend Movement: Over the weekend, Bitcoin might jump to $33,000 due to news or market sentiment, but this isn't reflected on the CME because it's closed.
Monday Open: When CME opens on Monday, Bitcoin doesn't start trading at $30,000 where it left off. Instead, it begins at $33,000, creating a gap on the price chart between $30,000 and $33,000.

⭐𝗪𝗵𝘆 𝗗𝗼 𝗧𝗵𝗲𝘀𝗲 𝗚𝗮𝗽𝘀 𝗠𝗮𝘁𝘁𝗲𝗿?
Price Reversion: Often, traders watch these gaps because there's a tendency for Bitcoin's price to move back to fill this gap, meaning it might drop back to $30,000 or close to it before continuing its trend. This happens because traders might see the gap as an overreaction or an opportunity.
Trading Strategy: If you're trading, you might bet on Bitcoin moving back to fill this gap. For instance, if you believe Bitcoin will drop back to $30,000, you could sell at $33,000, aiming to buy back cheaper at $30,000, making a profit from the price difference.
Market Sentiment:These gaps can also reflect significant changes in market sentiment or big news over the weekend that wasn't priced in earlier.

𝗘𝘅𝗮𝗺𝗽𝗹𝗲 𝗶𝗻 𝗦𝗶𝗺𝗽𝗹𝗲 𝗧𝗲𝗿𝗺𝘀:
Think of it like a game of catch-up. If you and your friend are playing a game where you have to match numbers, but you can only play on weekdays, and over the weekend, your friend moves the number from 30 to 33 without you, when you come back on Monday, you'd start at 33. But, because you both usually like to match numbers, there's a good chance you'll go back to 30 before moving forward again. That's your CME gap – a space in the game where the numbers didn't match up due to a break in play.
In Bitcoin's world, these gaps are like little mysteries or opportunities for traders, watching and waiting for #Bitcoin to catch up or move on, providing insights into where the price might go next based on past behavior and market dynamics.

#CMEBitcoinSpotTrading #CMEFILLING #CMEGap #CMEGaps #CME

Anthony Scaramucci, founder of Skybridge Capital, believes that the institutional adoption of bitcoin is happening now. Highlighting recent developments like the State of Wisconsin Investment Board investing in Blackrock’s spot bitcoin exchange-traded fund (ETF), he predicts that other pension funds will make similar announcements. “Bitcoin now has the regulatory approval and I think that was the rate-limiting step for a lot of these large-scale institutions,” he detailed.
‘I Think We’re Still Early in Bitcoin’
Skybridge Capital’s founder and managing partner, Anthony Scaramucci, discussed the institutional adoption of bitcoin in an interview with CNBC last week. Emphasizing the ongoing and accelerating integration of BTC by large institutions, he said:
I think the institutional adoption is happening now.
He mentioned the recent disclosure by the State of Wisconsin Investment Board about its share ownership of Blackrock’s spot bitcoin exchange-traded fund (ETF), the Ishares Bitcoin Trust (IBIT). “The State of Wisconsin announced. We expect other pension funds to announce. And, of course, bitcoin now has the regulatory approval and I think that was the rate-limiting step for a lot of these large-scale institutions,” Scaramucci opined.

“Just remember if you’re not long bitcoin, you’re possibly short bitcoin in the sense that if you believe … that this will be part of a long-term tactical asset allocation strategy for institutional investors, then at some point, you’ve got to get long bitcoin,” the Skybrige Capital founder emphasized. “So, a lot of smart institutions are saying ‘let me get long this thing before it becomes part of a total tactical asset allocation index’ and I think that’s starting to happen now and that’s very good for bitcoin.”
Scaramucci further shared: “I think what’s important for people to do is to do the homework on bitcoin because when you do the homework on bitcoin you go towards bitcoin. I know very few people that have done the homework, you know, several hundred hours of understanding bitcoin, not just reading the white paper, but really understanding the history of money and all the different boxes that bitcoin checks off.”

He then mentioned when Skybridge first announced its bitcoin investment. “A lot of institutions, wirehouses they didn’t like it. They didn’t like the position. It’s four years later. Now, these very same wirehouses are adopting the position and are getting long the ETF or at least allowing their financial advisors to recommend the ETF. And so, you know, sometimes when you’re early, you get a lot of bumps and scrapes,” Scaramucci opined. Nonetheless, he stressed:
I think it pays to be early in bitcoin, and I think we’re still early in bitcoin.
#altcoins #BTC🔥🔥🔥🔥🔥 #BlackRock #BTC #CMEBitcoinSpotTrading
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