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Bitcoin Futures are in a Good Position when you Compare them to their Spot Equivalent

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Bitcoin futures were thought to be a snippet in the overarching currency market. When you look at it in general, you will soon see that it is completely meagre in comparison and this is especially the case when you look at the bigger spot market. A recent report has been done by Bitwise Asset Management and this actually states otherwise. In March, it was reported that the US Securities Commission did an analysis on the CME and they found that ten currencies were incredibly prominent. This is especially the case when you look at their trade volume. Prior to shedding any kind of light on the future, it should be noted that the report showed that over 95% of trading volume exchanges are actually fake, and that they are most certainly involved with non-economic wash trading. So when you are able to take into account this disparity, you will soon see that the percentage of futures and the volume that they have to offer increases from a measly 1.51% to 33.33%. This is staggering to say the least, but it has been reported that Spot Volume has totalled over $6 billion. After you remove all of the suspicious exchanges, you will see that the actual volume dropped to nearly $273. This is in comparison to the futures market volume, which stands at over $91.

Furthermore, the increase in futures as a point percentage has actually been increasing. When you look at things between November 2018 and then January 2019, you will soon see that the futures have been steadily increasing and that now it stands at over 15%. It has also doubled recently and this happened ever since 2017. Only on two different occasions did the volume in comparison to the market shoot well above 20%.

Of course, the CME and the CBOE are in really good stead when you look at the world’s top cryptocurrency exchange. The daily volume at the CME actually brings in $84.82 million and it ranks behind Binance which is at $110.5 million. The CBOE fairs well too, this takes the ninth spot on the ladder and it rings at $38 million. Of course, even though the CBOE is having some degree of comparative success against the spot exchange, it is safe to say that it has not been performing very well at all. This is especially the case when you look at the cross-town rival. The slump has really forced the CME and the CBOE to delist their futures, which is otherwise known as XBT. It should be noted however that the XBT futures are due to expire later on in the year and that they are not going to be offloaded prematurely at all. Bitwise has also pointed out that the CME Future will not be taking it off the market before this point.

 

 

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