[NEWS] US derivatives giant CME plans to start spot trading of Bitcoin

It has been revealed that the world's largest derivatives exchange, Chicago Mercantile Exchange (CME), is planning to start spot trading of Bitcoin (BTC). The Financial Times reported on the 16th. The aim is to gain exposure to the cryptocurrency sector, which is in high demand among Wall Street asset managers.

According to a person familiar with the matter, CME is in discussions with traders who want to buy and sell cryptocurrencies in a regulated market.

The plan has not yet been finalized, but if it is realized, it may be supported by investors in traditional financial markets. This will open a new window for investors, in addition to the SEC's (US Securities and Exchange Commission) approval of a Bitcoin spot ETF in January this year.

CME has declined to comment on the plan.

If CME, which already offers Bitcoin futures trading, starts spot trading of Bitcoin, investors will be able to more easily engage in basis trading, which is a way to profit from the difference between spot and futures prices.

Basis trading is a common technique used in the U.S. Treasury market, where traders borrow money to buy the underlying asset while selling futures, profiting from the small gap between the two. The majority of basis trades in U.S. Treasuries are traded on the CME.

Bitcoin has been stalled since surpassing $73,000 in March, but the spot Bitcoin ETF has become the fastest-growing ETF in history.

Hedge funds such as Bracebridge Capital and the Wisconsin State Pension Fund have poured more than $10 billion into spot Bitcoin ETF products offered by asset managers such as BlackRock, Fidelity, and Ark.

BlackRock CEO Larry Fink said in March that he was "long-term bullish" on Bitcoin.

Reference:Report
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