CME Prepares To Launch Spot Bitcoin Trading
The Chicago Mercantile Exchange (CME), the world’s largest futures Bitcoin (BTC) trading platform, is set to introduce spot BTC trading in response to increasing demand from Wall Street investors. CME is in discussions with crypto traders to establish a regulated marketplace for spot BTC trading, expected to operate through EBS, a Swiss currency trading platform known for its strict regulations on crypto asset trading.
The introduction of spot BTC trading on CME would enable traders to engage in basis trades, a strategy that aims to profit from the small price discrepancies between futures contracts and the underlying spot BTC. This development comes after the US Securities and Exchange Commission’s (SEC) approval of spot Bitcoin exchange-traded funds (ETFs) in January, signaling the growing acceptance and integration of digital assets into traditional financial markets.
As of March 31, 937 professional firms were invested in U.S. spot ETFs, compared to just 95 professional firms invested in gold ETFs during their first quarter. CME’s entry into spot Bitcoin trading could present significant competition for Binance, the largest crypto exchange by trading volume, which currently faces regulatory scrutiny worldwide.
(With inputs from Shikha Singh)
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