Sunday, November 27, 2022

Reporting Record Volume, CBOE’s Bitcoin Futures Contracts Just Boomed

Reporting Record Volume, CBOE’s Bitcoin Futures Contracts Just Boomed

Late last year, the Chicago Board Options Exchange (CBOE) — one of the most popular derivatives exchanges in the world — launched bitcoin futures contracts. Now, the decision is looking even more like a no-brainer in retrospect, as CBOE’s reported this week that an all-time high of 19,000 bitcoin futures contracts were traded on Wednesday, April 25th. 

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Demand Just Acutely Spiked

CBOE’s previous volume record came on January 17th, 2018, when approximately 15,500 bitcoin futures contracts were traded on the day.

In the months since, the daily volume average has hovered around 6,600 contracts traded, which is just shy of the ~6,650 mark that was traded on Tuesday, April 24th — the day before the latest volume surge.

As such,Wednesday’s trading flurry marks an acute tripling of trading activity for CBOE’s bitcoin futures in a 24-hour window. Notably, it’s an atypical volume spike that corresponded with bitcoin futures activity on the Chicago Mercantile Exchange (CME), where the amount of contracts traded on Wednesday — ~11,000 — was in excess of twice the amount traded on Tuesday.

In that sense, the uptick was not isolated to one or the other of the popular derivatives exchanges offering bitcoin futures in the United States.

CBOE Conducts 4th Contract Settlement

On April 19th, CBOE settled the April expiry of its bitcoin futures contracts — its fourth time doing so since launching the contracts in December 2017.

Per data provided by the Gemini cryptocurrency exchange, the latest round of contracts were settled at the price of $8,055.68 USD.

As of April 19th, more than 550,000 XBT futures contracts had been traded through CBOE since their launch, with the contracts collectively totaling around $6 billion USD in trades.

What’s your take? Do you think bitcoin futures are a beneficial wrinkle for the ecosystem? Let us know what you think in the comments below. 

Images via CNBC, Investor’s Business Daily

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