Bitcoin futures exchange growth, particularly the Chicago Mercantile Exchange (CME), is signaling a strong institutional interest in the cryptocurrency market. The world’s largest cryptocurrency, Bitcoin (BTC), began the week on a positive note, gaining around 15% last week. Currently trading above $34,000, BTC is up about 1% in the last 24 hours. The crypto market as a whole is also showing upward momentum, with the Market Index (CMI) up around 1.4% on the day and over 11% in the past week. This rally is fueled by the anticipation of a BTC spot ETF approval in the U.S. and the upcoming Fed interest-rate decision. If the crypto market continues to perform well even after the Fed announcement, it could signal further growth and resilience in digital assets.
Chicago Mercantile Exchange takes the lead
Data from Coinglass reveals that the CME has become the second-largest Bitcoin futures exchange, with Binance holding the largest market share. CME’s notional open interest (OI) reached $3.54 billion, surpassing 100,000 BTC for the first time. The exchange now holds a lifetime high of 25% share in the BTC futures market. This rise of a regulated financial exchange in the crypto market suggests that the recent rally is driven by institutional investors.
Thai bank Kasikorn acquires crypto exchange Satang
In other news, Thai bank Kasikorn, also known as K-Bank, has acquired a 97% stake in crypto exchange Satang for 3.705 billion Thai baht ($102.8 million). This acquisition comes after K-Bank established a $100 million fund for Web3 and fintech investments. Satang will be re-branded to Orbix, along with three new subsidiaries: Orbix Custodian, Orbix Invest, and Orbix Technology. K-Bank’s rival, Siam Commercial Bank, is also making moves in the digital asset industry through a partnership with Hashed, one of Thailand’s prominent Web3 investors.
Inflation concerns and Bitcoin’s role as a store of value
The year-on-year percentage change in the U.S. consumer price index from 2013 to date shows similarities to the 1970s. This suggests that inflation may rebound in the coming months, leading to increased demand for assets perceived as a store of value. Bitcoin, often referred to as digital gold, is set to undergo its fourth mining-reward halving in April next year, which has historically preceded major bull runs.
Conclusion
The growth of Bitcoin futures exchange, particularly the CME, indicates a strong institutional interest in the cryptocurrency market. This, combined with the anticipation of a BTC spot ETF approval in the U.S. and the upcoming Fed interest-rate decision, is driving the current rally in the crypto market. If the market continues to perform well even after the Fed announcement, it could signal further growth and resilience in digital assets.
Additionally, the acquisition of crypto exchange Satang by Thai bank Kasikorn highlights the increasing interest of traditional financial institutions in the digital asset industry. As concerns about inflation grow, Bitcoin’s role as a store of value becomes even more significant, especially with the upcoming mining-reward halving event. Overall, the rise of regulated financial exchanges like the CME in the crypto market is a positive sign for the future of digital assets.
