CME allegedly engaging in discussions with traders to launch Bitcoin trading
The Chicago Mercantile Exchange (CME), the largest futures exchange in the world, is reportedly considering launching Bitcoin trading services. This move comes as interest in digital assets on Wall Street continues to grow. The Financial Times has learned from sources familiar with the matter that CME has been in discussions with traders interested in trading the largest cryptocurrency by market value. However, the plan has not been finalized, and CME has not made any public statements regarding this matter.
The discussions follow the approval by the U.S. Securities and Exchange Commission (SEC) to list spot Bitcoin exchange-traded funds (ETFs) on CME, alongside its existing crypto futures products. Although institutional investors like Wisconsin’s Investment Board and BNY Mellon initially invested in spot Bitcoin ETFs, the market sentiment has cooled off, resulting in minimal inflows for ETF issuers.
If CME proceeds with its spot trading business, it will operate through the EBS currency trading venue in Switzerland, taking advantage of the region’s robust regulations governing the trading and storage of crypto.
The SEC approved multiple spot Bitcoin ETFs in early 2024 for listing on registered national exchanges in the U.S., including the Nasdaq, NYSE, and CBOE. However, the SEC has been reluctant to swiftly approve options for spot Bitcoin ETFs, raising concerns about whether options on spot crypto ETFs should be subject to the same regulations as stocks.
In other news, Australia is expected to launch spot Bitcoin ETFs by the end of 2024, according to Bloomberg.
