Cryptocurrency catalysts are driving records. Here’s why.
The approval of the spot Bitcoin ETF, upcoming Bitcoin halving, as well as Ethereum’s upgrades and anticipation for a spot Ether ETF led to sustained price rallies in Q1 for the two leading cryptocurrencies by market capitalization. Bitcoin’s price broke its years-old record reaching $73,700 while ether briefly crossed $4,000. As prices increased, so did volatility. Institutional and individual investors turned to our regulated and liquid markets to express their views and hedge their risk leading to record open interest and average daily volume across the CME Group Cryptocurrency suite of products in the quarter.
Cryptocurrency futures and options records in review
- Q1:
- ADV surpassed 82K contracts ($5.7B notional), +70% vs. Q4 2023
- Average notional open interest of $11.2B, +74% vs. Q4 2023
- March:
- ADV reached 110.6K contracts (+$7.8B)
- A record 6,392 unique accounts traded across the suite in March
- 252,460 contracts traded on March 5
- $13.7B notional traded on March 25
- $18.26B notional open interest on March 28
The need for institutional-grade risk management tools was evidenced by multiple large open interest holders (LOIH) records throughout the quarter. CME Group Cryptocurrency futures achieved a record 530 the week of March 12, with a record quarterly average of 442 (+18% vs Q4 2023).
Meet us at Consensus
Attending Consensus 2024 this May? Stop by booth #1341 to meet our Cryptocurrency Team in Austin, Texas.
Email us at cryptoproducts@cmegroup.com to schedule a time to discuss our products at the conference.
Small but mighty, how the micros have returned
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