CME Reportedly Considering Launch of Bitcoin Trading Amid Growing Demand

CME Reportedly Considering Launch of Bitcoin Trading Amid Growing Demand

The Chicago Mercantile Exchange (CME) is reportedly exploring the launch of Bitcoin trading on its platform to leverage the increasing demand for digital assets on Wall Street.

According to sources familiar with the matter, CME Group, the world’s largest futures exchange, is in discussions with traders about introducing Bitcoin trading services. This move reflects the rising interest in the largest cryptocurrency by market value. However, no final decision has been made, and CME has not yet issued any public statements.

These discussions follow the U.S. Securities and Exchange Commission (SEC) approval for listing spot Bitcoin exchange-traded funds (ETFs) on CME. This approval complements CME’s existing crypto futures products. Initially, there was significant institutional investment in these spot Bitcoin ETFs, with entities like Wisconsin’s Investment Board and BNY Mellon participating. However, the market enthusiasm has since diminished, leaving many ETF issuers with minimal inflows.

If CME proceeds with launching its spot trading business, it will utilize the EBS currency trading venue in Switzerland, benefiting from the region’s stringent regulations on crypto trading and storage.

In early 2024, the SEC approved multiple spot Bitcoin ETFs for listing on all registered national exchanges in the U.S., including Nasdaq, NYSE, and CBOE, after a prolonged effort spanning a decade. Despite this approval, the SEC has been cautious about approving options for spot Bitcoin ETFs, raising concerns about whether these options should be regulated similarly to stocks.

This potential move by CME to enter the spot Bitcoin trading market underscores the growing mainstream acceptance and demand for cryptocurrencies, as well as the evolving regulatory landscape surrounding digital assets.

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