Bitcoin Futures Open Interest Soars to $4.06 Billion at CME Group
The financial industry is closely monitoring the progress of several spot bitcoin (BTC) exchange-traded funds (ETFs) that are awaiting regulatory approval. Investors are increasingly convinced of the institutional appeal of this cryptocurrency. During the Q3 earnings call of Galaxy Digital, Mike Novogratz emphasized this sentiment and predicted that "2024 will be a year of institutional adoption."
On November 9, 2023, the price of bitcoin reached an 18-month high, soaring to $37,978. The following day, the value of bitcoin settled slightly above the $37K mark. This fluctuation aligns with the growing institutional attention, as evidenced by the CME Group's bitcoin futures open interest surpassing that of Binance on Friday. Eleven months ago, CME ranked third in terms of bitcoin futures open interest, with Binance leading the market.
The current landscape has shifted, with CME's open interest totaling $4.06 billion, surpassing Binance's $3.87 billion, according to coinglass.com metrics. CME's open interest (OI) stands at 108,900 BTC, closely followed by Binance at 103,690 BTC. Bybit follows Binance with an OI of $2.75 billion, trailed by Okx at $1.83 billion and Bitget at $1.20 billion, completing the top five ranks in OI.
Overall, the combined crypto futures OI across all trading platforms reached $34.25 billion on Friday, marking a 3.87% increase from the previous day. In light of CME Group surpassing Binance in OI, Bloomberg analyst James Seyffart commented on the development on the social media platform X (formerly Twitter).
"This is an interesting development," Seyffart posted. "Does this now constitute a 'market of significant size'? Haha."
CME Group introduced bitcoin futures on December 18, 2017, during the notable bull run when BTC approached the $20,000 mark for the first time. Prior to CME's offering, the Chicago Board Options Exchange (Cboe) was the first institutional platform to launch BTC futures. However, Cboe ceased issuing new contracts for its cash-settled XBT bitcoin futures in 2019.
What are your thoughts on CME Group surpassing Binance in terms of bitcoin futures open interest on Friday? Share your opinions and ideas about this subject in the comments section below.
Frequently Asked Questions
Can I hold a gold ETF in a Roth IRA?
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
A traditional IRA allows for contributions from both employer and employee. A Employee Stock Ownership Plan, or ESOP, is another way to invest publicly traded companies.
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.
Also available is an Individual Retirement Annuity. You can make regular payments to your IRA throughout your life, and you will also receive income when you retire. Contributions to IRAs do not have to be taxable
How Much of Your IRA Should Be Made Up Of Precious Metals
It's important to understand that precious metals aren't only for wealthy people. You don't need to be rich to make an investment in precious metals. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You might consider purchasing physical coins, such as bullion bars and rounds. You could also buy shares in companies that produce precious metals. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
You can still get benefits from precious metals regardless of what choice you make. Even though they aren't stocks, they still offer the possibility of long-term growth.
Their prices rise with time, which is a different to traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
What Is a Precious Metal IRA?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. They are great investments for your money, and they can protect you from inflation or economic instability.
Precious metals often refer to themselves as “bullion.” Bullion refers simply to the physical metal.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. You'll get dividends each year.
Precious metal IRAs are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. Instead, you pay a small percentage tax on the gains. You can also access your funds whenever it suits you.
Which precious metals are best to invest in retirement?
It is gold and silver that are the best precious metal investment. They are both easy to trade and have been around for years. You should add them to your portfolio if you are looking to diversify.
Gold: Gold is one of man's oldest forms of currency. It is also extremely safe and stable. It's a great way to protect wealth in times of uncertainty.
Silver: Silver is a popular investment choice. It's a great option for those who want stability. Silver tends instead to go up than down, which is unlike gold.
Platinum: A new form of precious metal, platinum is growing in popularity. It is very durable and resistant against corrosion, much like silver and gold. However, it's much more expensive than either of its counterparts.
Rhodium – Rhodium is used to make catalytic conversions. It is also used for jewelry making. It is relatively affordable when compared to other types.
Palladium: Palladium has a similarity to platinum but is more rare. It's also more affordable. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
What are the advantages of a IRA with a gold component?
The benefits of a gold IRA are many. It's an investment vehicle that lets you diversify your portfolio. You have control over how much money goes into each account.
You have the option of rolling over funds from other retirement account into a gold IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best thing about investing in gold IRAs is that you don’t need any special skills. They are offered by most banks and brokerage companies. You do not need to worry about fees and penalties when you withdraw money.
There are also drawbacks. Gold has always been volatile. It is important to understand why you are investing in gold. Is it for growth or safety? Are you trying to find safety or growth? Only once you know, that will you be able to make an informed decision.
You might want to buy more gold if you intend to keep your gold IRA for a long time. A single ounce will not be sufficient to meet all your requirements. Depending on the purpose of your gold, you might need more than one ounce.
You don’t necessarily need a lot if you’re looking to sell your gold. You can even manage with one ounce. However, you will not be able buy any other items with those funds.
Do you need to open a Precious Metal IRA
The most important thing you should know before opening an IRA account is that precious metals are not covered by insurance. There are no ways to recover the money you lost in an investment. This includes losing all your investments due to theft, fire, flood, etc.
Protect yourself against this type of loss by investing in physical gold or silver coins. These coins have been around for thousands and represent a real asset that can never be lost. These items are worth more today than they were when first produced.
Consider a reputable business that offers low rates and good products when opening an IRA. It's also wise to consider using a third-party custodian who will keep your assets safe while giving you access to them anytime.
Do not open an account unless you're ready to retire. So, don't forget about the future!
Statistics
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
finance.yahoo.com
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
investopedia.com
cftc.gov
How To
The History of Gold as an Asset
From the beginning of history, gold was a popular currency. It was universally accepted and loved for its beauty, durability, purity and divisibility. Because of its intrinsic value, it was also widely traded. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. For example, in England, one pound sterling was equal to 24 carats of silver; in France, one livre tournois was equal to 25 carats of gold; in Germany, one mark was equal to 28 carats of gold; etc.
In the 1860s, the United States began to issue American coins made from 90% copper, 10% Zinc, and 0.942 Fine Gold. This resulted in a decline of foreign currency demand and an increase in the price. In this period, large amounts of gold coin were minted by the United States, which caused the gold price to drop. The U.S. government needed to find a solution to their debt because there was too much money in circulation. They sold some of their excess gold to Europe to pay off the debt.
Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. However, after World War I, many European countries stopped taking gold and began using paper money instead. The value of gold has significantly increased since then. Even though the price of gold fluctuates, it remains one the best investments you can make.
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By: Jamie Redman
Title: CME Group Surpasses Binance in Bitcoin Futures Open Interest as Market Gains Momentum
Sourced From: news.bitcoin.com/cme-bitcoin-futures-open-interest-climbs-past-binance-indicating-growing-institutional-demand/
Published Date: Fri, 10 Nov 2023 21:30:46 +0000
