Chicago Mercantile Exchange (CME) is said to be considering entering the Bitcoin trading market in order to take advantage of the increasing demand for the cryptocurrency among Wall Street fund managers. The Financial Times reported that CME has been in discussions with crypto traders about creating a regulated marketplace for buying and selling Bitcoin. While plans have not been finalized, this move by CME demonstrates the ongoing interest from major Wall Street players in the crypto space, following the approval of Spot Bitcoin exchange-traded funds by the SEC in January. According to the report, CME is planning to offer spot Bitcoin trading through the Swiss currency trading platform EBS, which is known for its strict regulations on crypto asset trading and storage. The addition of spot Bitcoin trading to CME’s existing Bitcoin futures offerings would enable investors to easily engage in “basis trades,” which involve borrowing money to sell futures contracts while simultaneously buying the underlying Bitcoin, with the aim of profiting from the price difference between the two. This strategy is already popular in the US Treasury market and a significant portion of it takes place on CME platforms. CME has emerged as one of the leading Bitcoin futures markets globally, surpassing Binance, as institutional investors seek to capitalize on Bitcoin’s volatility. In an effort to enhance transparency and trust in cryptocurrency trading, CME Group has partnered with CF Benchmarks to establish standardized reference rates and spot price indices for popular cryptocurrencies like Bitcoin and Ether, providing a clear and reliable view of cryptocurrency values.
