CME moves toward 24/7 trading in Bitcoin derivatives…could it catalyze institutional inflows?
Summary
- CME was reported to be planning to shift Bitcoin (BTC) derivatives to a 24/7 trading regime.
- With around-the-clock trading, institutional investors may be able to adjust positions over weekends, potentially narrowing arbitrage windows between regulated-market futures and offshore exchange perpetual futures.
- The market was said to be analyzing that a larger regulated U.S. volatility market and expanding crypto derivatives trading volumes could increase their influence on Bitcoin global price discovery and near-term price action.
CME Group is set to shift Bitcoin (BTC) derivatives to a 24/7 trading regime.
On the 24th, cryptocurrency news outlet CoinDesk reported that CME plans to move Bitcoin derivatives to around-the-clock trading within this year, a step that could accelerate the reallocation of institutional capital.
According to the report, CME already maintains the lead in open interest in the regulated Bitcoin futures market. Hedging trades linked to U.S. spot Bitcoin exchange-traded funds (ETFs) are also often executed using CME futures. However, weekend trading has so far been halted, giving rise to the so-called “CME gap.”
If 24/7 trading is introduced, institutional investors will be able to adjust positions even on weekends. That, in turn, could narrow arbitrage windows between regulated-market futures prices and perpetual futures on offshore exchanges.
Karl Naim, chief commercial officer (CCO) at XBTO, told CoinDesk that “traditional hedge fund managers will be able to trade Bitcoin via products they are familiar with, without having to change their technical infrastructure,” adding that “there is less reason to take on counterparty risk at exchanges they don’t know well.”
The market is also seeing analysis that an expansion in derivatives trading could further increase the influence of the regulated U.S. volatility market on global Bitcoin price discovery. Indeed, some exchange executives have previously projected that, over the long term, crypto derivatives volumes could surpass spot trading.
Bitcoin’s near-term price action is also being viewed as becoming more sensitive to macro factors. Naim noted that “when risk-off phases unfold due to geopolitical clashes and the like, gold can rise while equities and Bitcoin fall—producing a ‘risk-off’ dynamic.”
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
![[Analysis] "Bitcoin reaffirms resistance at $70,000…attention turns to whether Ethereum can hold $1,600 support"](https://media.bloomingbit.io/PROD/news/6d6015f3-130d-4a50-9dd4-eb518080c2d6.webp?w=250)
