Bitcoin
CME prepares to launch Bitcoin spot trading, challenging Binance’s dominance
O Chicago Mercantile Exchange (CME) is preparing to present the spot Bitcoin trading, responding to growing demand for Wall Street’s leading digital asset, the Financial Times reported on May 16th.
CME is the world biggest BTC futures trading medium and is in talks with crypto traders to establish a regulated market for BTC spot trading. The platform is expected to operate through EBS, a Swiss currency trading platform known for its strict regulations on trading crypto assets.
The introduction of spot trading for BTC on the CME would allow traders to participate in basic trading. This trading strategy aims to profit from the small price differences present in futures contracts and the underlying spot BTC.
While details of the trading platform have not yet been finalized, CME’s potential entry emphasizes the continued interest of Wall Street’s top players in the crypto sector.
This development follows the recommendation of the SEC approval of spot Bitcoin exchange-traded funds (ETFs) in January, signaling the growing acceptance and integration of digital assets into traditional financial markets.
Recent SEC filings from several Wall Street financial institutions such as Morgan Stanley and Millennium Management, reveal that many of these companies have exposure to crypto-related investment products. Vetle Lunde, Senior Analyst at K33 Research he said.
“According to 13F reports, 937 professional firms were invested in US spot ETFs as of March 31. In comparison, gold ETFs had 95 professional companies invested in in the first quarter (Bitwise). Retail has the majority of the float. Professional investors held exposure of $11.06 billion at the end of the first quarter, representing 18.7% of BTC ETF AUM.”
Meanwhile, CME’s entry into Bitcoin spot trading could pose significant competition to Binancethe largest crypto exchange by trading volume, which is currently facing regulatory scrutiny around the world. Binance was the leading Bitcoin futures platform worldwide before the rise in CME activity.
According to Kaiko dataBinance accounts for 56% of BTC spot trades, followed by Coinbase and Bybit with 10.1% and 10.5%, respectively.