CME plans to launch Bitcoin spot trading! Cryptocurrency exchange Coinbase plunged more than 9% after hearing the news

The world’s largest futures exchange, CME Group, reported yesterday that it plans to launch Bitcoin spot trading, and has contacted people who want to buy and sell Bitcoin on a regulated market. traders discussed that CME currently provides Bitcoin futures trading. If spot Bitcoin trading is introduced, it will make it easier for investors to conduct basis trading.

Perhaps affected by this news, the share price of Coinbase, a U.S.-listed cryptocurrency exchange, plummeted 9.48% to $199.07 on the 16th.

Facing strong competitors

If CME enters Bitcoin spot trading, it will be bad news for Coinbase. Although most of Coinbase’s revenue still comes from transaction fees charged to retail investors, the first The first quarter financial report showed that its consumer trading revenue was US$935 million and institutional revenue was US$85 million. However, as traditional institutions are now more interested in cryptocurrencies, the pressure they will bring to native exchanges in the future cannot be underestimated.

Earlier this year, with the approval of the Bitcoin spot ETF, Wall Street and financial institutions have increased their interest in cryptocurrencies. This is also reflected in Coinbase’s performance. The exchange spent the first quarter of this year. The transaction volume of investors increased by 93% compared with the previous quarter, and the transaction volume of institutions increased by 105% compared with the previous quarter. The revenue growth of Coinbase's institutional business also exceeded that of the consumer business.

CME is the largest Bitcoin futures exchange in the United States

Coindesk reported that the Chicago Mercantile Exchange (CME), which is headquartered in Chicago and has a history of more than a century, has been designated by U.S. regulators as "Systemically Important Financial Market Facility" means that CME is subject to stricter supervision, and many investors also believe that the government will never allow CME to fail under financial pressure.

Calculated by open interest, CME is already the largest Bitcoin futures exchange in the United States.

A common reason why traders don’t want to get involved with digital assets is due to a lack of trust in cryptocurrency exchanges. The recently launched Bitcoin spot ETF provides traders with a safer way to gain exposure to Bitcoin. Bitwise previously It is estimated that more than 700 institutions held Bitcoin spot ETF positions in the first quarter, with an asset management scale of US$5 billion.

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