The Chicago Mercantile Exchange (CME) will soon offer spot Bitcoin trading, according to the Financial Times. This move comes as cryptocurrency becomes more mainstream and demand for Bitcoin continues to surge.
CME, the world’s biggest Bitcoin futures trading platform, is working on creating a regulated spot Bitcoin trading marketplace. They are in talks with cryptocurrency traders and are expected to partner with EBS, a Swiss currency trading platform known for its strict regulations.
Spot trading in the cryptocurrency market involves buying or selling at the current market price. This is different from futures trading, where traders can speculate on the price movement of cryptocurrencies without actually owning them.
Although cryptocurrency prices can be highly volatile, spot trading carries a relatively low level of risk because traders are only exposed to the price movements of their chosen cryptocurrencies. However, the potential returns from spot trading are generally not as high as those from futures trading.
CME, the Chicago Mercantile Exchange, is reportedly planning to launch spot trading for Bitcoin. This move would allow traders to profit from the price differences between futures contracts and the actual Bitcoin. It shows how cryptocurrencies are becoming more mainstream and attracting the attention of big financial players.
In January, the Securities and Exchange Commission approved spot Bitcoin ETFs. This opened the doors for large financial institutions like BlackRock and Fidelity to enter the digital asset space.