CME Group has reported record crypto trading volume in the fourth quarter 2024. This reflects a rise in interest from both institutional investors and consumers in digital asset derivatives.
During the last quarter of 2018, the derivatives exchange recorded an average daily volume of trading of around $10 billion for crypto futures, options and contracts. This is more than 3000% greater than that of 2023.
The momentum has carried into 2025, with January setting a new monthly record for crypto contract volumes, according to the company’s fourth-quarter earnings call.
CME’s Crypto Derivatives Segment was among its strongest performers last year. The exchange’s CFO, Lynn Marti, said during the call:
“We continue to see significant growth in digital asset contracts.”
Terry Duffy, CEO of the company, acknowledged the market’s demand for more crypto-related assets, but stressed that it was important to work with regulators – particularly the US Securities and Exchange Commission – in order to comply before listing any new assets.
CME announced recently that it would introduce options for its micro Bitcoin futures (BTC), a product designed with smaller contract sizes, and greater flexibility, to cater to both retail and institution traders.
The growing competition
CME is facing increasing competition as other platforms expand their digital assets offerings.
Coinbase launched a derivatives market in 2021 and has since gained popularity by providing a wider variety of crypto-futures contracts including memecoins. Coinbase’s exchange products and futures contracts are aimed at both retail and institutional traders, as opposed to CME.
Robinhood, too, entered the crypto-derivatives market this January. The company launched Bitcoin Futures in anticipation of introducing Ethereum (ETH) Futures at a later date. The platform’s move signals a broader trend of mainstream trading firms seeking to capture a share of the growing digital asset derivatives market.
According to CoinGlass data, the surge in cryptocurrency derivatives is part of an overall market shift. Bitcoin futures opened interest exceeded $60 billion on February 12, 2018. The increase in crypto derivatives trading reflects a growing confidence within the industry, with traders using futures and option to hedge, speculate, and diversify their portfolios.
The use of futures contracts to manage exposure to digital assets has been popular for many years. They allow traders to fix a fixed price at which they will buy or sell a particular asset.
Options contracts, which grant the right — but not the obligation — to buy or sell at a set price, have also gained traction as traders seek more advanced hedging and speculation strategies.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
