CME Spot Trading Poses Threat to Centralized Exchanges

IconCNT16 May, 2024

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CME Spot Trading Poses Threat to Centralized Exchanges

Markus Thielen, founder of crypto market analytics firm 10X Research, believes that centralized exchanges like Binance and Coinbase could face significant competition if CME Group launches bitcoin spot trading services. "If CME ventures into the bitcoin spot market, crypto exchanges may lose competitiveness in some of their operations, especially since bull markets are typically led by institutional investors who seek to trade in a well-regulated environment," he said. A CME bitcoin spot trading offering could complement the exchange's existing micro bitcoin futures contracts and bolster its market dominance. CME leads the pack in terms of bitcoin futures open interest, while the unregulated offshore spot market is dominated by Binance. Previously on May 16, 2024, Markus Thielen had predicted that CME's entry into bitcoin spot trading could lead to reduced competitiveness for centralized exchanges.

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