The world's largest futures exchange is reportedly working on plans to offer spot Bitcoin (BTC) trading amid growing interest in cryptocurrency-based investments.
The Financial Times reported, citing three people familiar with the matter, that CME Group is already in talks with traders who want to buy and sell cryptocurrencies on regulated markets.
The plan, which has not yet been finalized, is to operate CME's spot trading operations through an EBS currency trading venue in Switzerland.
One cryptocurrency trading executive is skeptical that the derivatives giant operates its Bitcoin trading operations as two markets: CME in Chicago and EBS in Switzerland.
“I don't understand how you can maximize every efficiency.”
CME already hosts Bitcoin futures trading, but the launch of spot trading for the top crypto asset will make it easier for investors to conduct basis trading. This is a popular trading strategy among professional crypto traders and involves borrowing funds to sell futures while buying the underlying asset. Extract profit from the difference.
The move comes as Bitcoin exchange-traded funds (ETFs) are rapidly gaining popularity among deep-pocketed investors.
Boston-based hedge fund Bracebridge Capital has invested in $262 million worth of ARK 21 Shares Bitcoin ETF (ARKB) and $81 million worth of BlackRock's i, according to Bloomberg's senior ETF analyst. He owns the Shares Bitcoin Trust (IBIT) and the Grayscale Bitcoin Trust ETF (GBTC) worth $20 million. )
In a filing with the U.S. Securities and Exchange Commission (SEC), major bank JPMorgan Chase also revealed that it currently has customers across BlackRock's iShares Bitcoin Trust and ProShares Bitcoin Strategy ETF (BITO). He revealed that he owns $760,000 in spot Bitcoin ETFs. Fidelity's Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Trust, and Bitwise Bitcoin ETF.
Banking giant Wells Fargo also currently owns 2,245 shares of Grayscale Bitcoin Trust, worth $130,254.
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Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors should perform due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that transfers and transactions are made at your own risk and you are responsible for any losses you may incur. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets. The Daily Hodl is also not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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