Derivatives tycoon CME’s bitcoin futures volume witnessed May as the best month since its 2017 launch, as almost 300,000 contracts were traded in one month.
Average daily volume (ADV) reached over 13,600 contracts, worth $515 million in notional value or 68,000 in bitcoin. This is a 27 percent increase compared to April’s figures. On May 13 alone, bitcoin futures traded reached a single-day volume of 33,677 contracts ($1.3 billion notional value or168,000 equivalent bitcoin). Meanwhile, BTC hit a record open interest of 5,190 contracts on May 28.
According to research conducted by CME Group, 223 trading accounts were added in May and this was the most since January last year. This may suggest that institutional interest is on the rise.
The month of May witnessed a 27 percent increase in volume compared to the month prior and a 73.69 percent increase on March’s volumes. This hints a growing interest in bitcoin futures.
However, volume and open interest are two particularly different things.
Volume refers to the number of contracts traded in a day. The figure begins again at zero after each session.
On the other hand, open interest is the number of contracts that have been made and that are open.
Futures were initially listed on the CME during the peak of the bull market in December 2017. However, futures trading activity continued to be dull all throughout 2018 due to the crypto bear market.
Nevertheless, the data show that interest is budding, meaning more companies are using the tool to speculate or manage risk on the crypto markets.