There’s an Uptick in Institutional Demand for Crypto Derivatives – CEO of CME Group
The Chairman and CEO of CME Group said that he was pleased by the institutional demand for his company’s crypto derivatives products.
Institutional demand for crypto derivatives
During an interview on CNBC, Terrence Duffy expressed his pleasure with the growing institutional demand for CME Group’s crypto derivatives products.
— CNBC's Closing Bell (@CNBCClosingBell) February 8, 2023
He noted that the industry suffered after the end of last year but saw an uptick in open interest and trade starting in November and December 2022, which has continued into 2023.
He attributed this to institutions looking for a regulated market to trade on. Duffy specifically mentioned CME Group as a regulated exchange that has seen an uptick in its crypto products.
Record-breaking year for CME Group
During CME Group’s Q4 2022 Earnings Conference Call, Duffy reported that 2022 was the best year in CME Group’s history, with a record-breaking average daily volume of 23.3 million contracts, up 19% from 2021.
The financial products led the growth, which finished the year with a record average daily volume of 19.5 million contracts. The average daily volume of options across all asset classes also set a record with an average daily volume of 4.1 million contracts, up 23% compared to the previous year. Finally, the non-U.S. average daily volume increased to a record 6.3 million contracts.
MicroStrategy’s interest in CME Group
Recently, Bloomberg reported that Michael Saylor, the co-founder and Executive Chairman of MicroStrategy, stated that the company may consider dabbling in futures contracts on CME Group’s marketplace to generate yield.
Who is Terrence Duffy?
Terrence A. Duffy is the Chairman and CEO of CME Group, the world’s leading and most diverse derivatives marketplace.
What is CME Group?
CME Group is the world’s leading and most diverse derivatives marketplace, offering the widest range of futures and options products for risk management.