CME emerging as hub for institutional crypto trading: Analysis

The Chicago Mercantile Exchange (CME) is solidifying its position as the central hub for institutional cryptocurrency trading, according to a CoinDesk analysis. The shift comes as the CME Group prepares to introduce 24-hour trading for its crypto futures and options products on May 29. CoinDesk noted that the CME is already a leader in the Bitcoin futures market by open interest, with its contracts serving as the basis for hedging activities related to U.S. spot Bitcoin ETFs. Previously, the exchange's weekend closures created the "CME gap," preventing institutions from adjusting their positions while offshore exchanges remained active. The introduction of around-the-clock trading is expected to eliminate this restriction and likely narrow the price difference between CME futures and perpetual swaps on offshore exchanges. The analysis also predicted that as institutional involvement on the platform grows, Bitcoin's short-term price movements will become more sensitive to global risk sentiment.