CME Plans to Offer Bitcoin Trading Service

Chicago Mercantile Exchange (CME), renowned for operating one of the largest futures exchanges in the US, is reportedly planning to introduce spot Bitcoin trading for its clients, according to a report by the Financial Times.

Although CME has not officially confirmed or commented on these plans, the move comes amid rising demand for cryptocurrency investments among Wall Street money managers. This would not be CME’s first venture into the world of cryptocurrencies.

The Chicago-based exchange already operates a cryptocurrency futures market, offering standard and micro futures contracts for both Bitcoin and Ether.

CME is a leading player in Bitcoin futures exchanges by open interest, surpassing even Binance, which dominates the spot market.

The tentative plan for CME to launch Bitcoin spot trading would enable investors to facilitate basis trades more efficiently.

Basis trades involve borrowing money to sell futures while simultaneously purchasing the underlying asset, allowing traders to profit from the small price gaps between the futures and spot prices.