The Chicago Mercantile Exchange’s (CME) Bitcoin (BTC) Options market has experienced a 10 FOLD increase in Open Interest (OI) in a month, growing from $35 million on May 11 to $373 million on June 10.
Represented in yellow, CME options OI has experienced rapid growth. Source
The rise in OI is a sign that more institutional investors are warming up to cryptocurrencies. CME began offering Bitcoin options in 2020 and has quickly become one of the largest providers of Bitcoin derivative products. The CME’s Bitcoin options volumes have also increased since the start of June.
CME's options volumes has also been on the rise. Source
Derivative products, a go-to investment vehicle for institutional investors, have been on the rise for the past 12 months. Grayscale Investments reported its biggest inflow in their Q1 2020 report, which has spurred them to double down on their offerings, having bought 9500 BTC in May and almost half of all Ethereum mined in 2020
Fidelity Investments, in a survey conducted on 800 institutional investors, learnt that 80% of such investors saw the appeal of digital assets, with European investors more keen on the market than their American counterparts.
