Last month, the Chicago Mercantile Exchange (CME) saw a significant increase of 35% in its trading volume to reach $94.9 billion, the highest level since October 2021. The surge coincided with the U.S. Securities and Exchange Commission's (SEC) approval of spot Bitcoin exchange-traded funds (ETFs).

Bakkt, a cryptocurrency platform and payments app launched in 2019 with backing from the Intercontinental Exchange (ICE), owner of the New York Stock Exchange (NYSE), has recently raised concerns about its financial viability.

The Hong Kong General Chamber of Commerce (HKGCC) has submitted proposals for the local government's next budget, advocating for the issuance of stablecoins tied to the Chinese yuan.

Top stories in the Crypto Roundup today:

• CME’s Crypto Derivatives Trading Volumes Hit Record High
• Crypto Firm Bakkt Reveals Financial Woes, Eyes Public Markets to Fund Its Future
• Hong Kong Chamber of Commerce Calls for Issuance of Stablecoins Linked to Yuan and Other Fiat Currencies
• Digital Asset Spot Volumes Rise for the Fourth Consecutive Month

CME’s Crypto Derivatives Trading Volumes Hit Record High

Last month the Chicago Mercantile Exchange (CME) saw a significant increase of 35% in its trading volume to reach $94.9 billion, the highest level since October 2021. The surge coincided with the U.S. Securities and Exchange Commission's (SEC) approval of spot Bitcoin exchange-traded funds (ETFs).

The CME is a key player in the derivatives market, facilitating the trade of financial, commodity, and agricultural futures and options contracts. It’s a popular platform among large institutions for Bitcoin futures, which allows traders to buy BTC at a set price in the future.

According to CCData’s latest Exchange Review Bitcoin futures’ trading volumes soared 42% to $73 billion in January, as institutional traders adjusted their positions in response to the approval of spot Bitcoin ETFs in the US.

The total amount of outstanding Bitcoin futures contracts on CME recently exceeded that of Binance, the world's largest centralized exchange by volume, before experiencing an 8.5% decrease to $4.42 billion.

Bitcoin options on the exchange also dropped nearly 30% to $1.57 billion, while trading volume for Ether futures on CME rose by 15.6% in January, amid speculation and anticipation over the potential approval of spot Ether ETFs by the SEC.

Crypto Firm Bakkt Reveals Financial Woes, Eyes Public Markets to Fund Its Future

Bakkt, a cryptocurrency platform and payments app launched in 2019 with backing from the Intercontinental Exchange (ICE), owner of the New York Stock Exchange (NYSE), has recently raised concerns about its financial viability.

In a filing with the Securities and Exchange Commission (SEC) on February 7, Bakkt indicated that it might not have sufficient funds to operate beyond the next 12 months, warning in a section discussing risk factors it may “not be able to continue as a going concern.”

Founded in 2018, Bakkt was introduced amidst significant enthusiasm, positioning itself as a gateway for institutional investors to gain exposure to Bitcoin. While Bakkt was introduced during a bear market and the space has since recovered, the firm kept on struggling financially.

The company has warned that it has been unable to generate sustainable operating profit and cash flows, and as a result its ability to sustain operations is in jeopardy unless it manages to secure additional funding.

Bakkt's strategy to address its financial shortfall involves potentially issuing registered securities in public markets, aiming to raise the capital necessary to fund its “long-term vision.”

Hong Kong Chamber of Commerce Calls for Issuance of Stablecoins Linked to Yuan and Other Fiat Currencies

The Hong Kong General Chamber of Commerce (HKGCC) has submitted proposals for the local government's next budget, advocating for the issuance of stablecoins tied to the Chinese yuan.

These proposals include the possibility of stablecoins backed not only by the yuan but also by a mix of fiat currencies such as the Hong Kong dollar and the U.S. dollar.

Additionally, the HKGCC proposed the exploration of a "Virtual Asset Connect Scheme" with a potential daily cap of HK$20 billion ($2.5 billion), although specific details about the scheme were not elaborated in their proposal.

These proposals are part of the HKGCC's submission in anticipation of the Financial Secretary's budget address later this month.

Digital Asset Spot Volumes Rise for the Fourth Consecutive Month

In January, centralized exchanges witnessed a 4.45% increase in spot trading volumes, reaching $1.40 trillion, marking the fourth month in a row of growth, a phenomenon last observed in May 2019.

Binance led the pack as the largest spot trading platform, with its volumes climbing 2.73% to $437 billion, capturing a 31.3% market share. On the other hand, OKX, the second-largest exchange, experienced a 5.22% decrease in trading volumes to $99.1 billion, reducing its market share to 7.09% from 7.81%.

Coinbase, which acts as the custodian for the majority of US spot Bitcoin ETFs, increased its market share for the third straight month, reaching 5.42%.

Dig deeper into the world of cryptocurrency trading with CCData’s latest Exchange Review report.

CCData Joins Forces with BMLL Technologies to Facilitate Access to Digital Asset Data and Analytics

FCA- authorized benchmark administrator and leading provider of digital asset data solutions CCData has announced a collaboration with BMLL Technologies, a top independent provider of Level 3 historical data and analytics.

This strategic alliance unites two pioneers in their respective data provision sectors, enhancing client access to sophisticated data and analytics for both digital and traditional financial markets.

The collaboration is designed to simplify the complex landscape of financial data, addressing the challenges of diverse data types, trading mechanisms, and the sheer volume of information available. It offers a streamlined solution for accessing essential data, making it easier for users to manage, integrate, and process large datasets.

It comes as a response to the increased demand for digital asset data solutions tailored to institutional needs, especially following the U.S. approval of the first spot Bitcoin ETFs. CCData has carved out a niche in providing high-level digital asset order book data and is constantly evolving its services to include new metrics and insights into digital asset markets.

BMLL specializes in offering deep, granular Level 3 order book data and analytics, serving financial market participants, academic circles, and regulators with insights into market dynamics.

The combination of CCData's precise digital asset data and BMLL's detailed order book analytics for ETFs and Futures on digital assets promises market participants unmatched Crypto and FX data solutions. This collaboration is built on a shared dedication to delivering accurate and reliable data.

Press Release

State of the Crypto by Top Tier Exchange Volume

Build your project with CoinDesk Data

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.