BitMEX Co-founder and CEO, Arthur Hayes, recently announced in a tweet that BTC futures have surpassed the $2 Trillion mark since they were launched back in 2016. The exchange also hit an open interest of over $1 billion; this is part of the total $4 billion distributed amongst other leading players like OKEX.
Hayes’ tweet on Feb 3, further highlighted that the daily average Bitcoin Futures turnover in BitMEX is close to 288K with most of its clientele in Europe.
Bitcoin Futures; The Crypto Darling for Institutional Investors in 2020?
This year has seen the open interest on BTC futures go up by around 60%. Could this mean more institutional investors are speculating on this digital currency derivative? The most recent data analyzed by Skew Markets however show that only four major exchanges account for the existing $4 billion open interest in BTC futures.
BitMEX leads the pack followed closely by OKEX; both exchanges account for over $1 billion in open interest independently, roughly 50% of the total. Developments in regulatory frameworks for blockchain and crypto by some countries is one of the driving factors to adopt XBTUSD as a speculative asset in institutional portfolios. Last month, the markets recorded a high of $25 billion in BTC futures volume traded within a day.
Despite the success, BitMEX has faced a number of challenges; notably was the Coinbase Pro maintenance shutdown towards the end of January. Close to $28 million worth of XBTUSD contracts were liquidated during this period; some analysts have since said this was because over 50% of the BitMEX weighting index is supported by Coinbase Pro.