The Chicago Mercantile Exchange (CME) is gearing up to introduce spot Bitcoin trading, responding to the growing demand for the leading digital asset on Wall Street, the Financial Times reported on May 16.CME is the world’s largest futures BTC trading medium and has been in talks with crypto traders to establish a regulated marketplace for spot BTC trading. The platform is anticipated to operate through EBS, a Swiss currency trading platform known for its strict regulations on crypto asset trading.The introduction of spot trading for BTC on CME would allow traders to participate in basis trades. This trading strategy aims to profit from the small price differences present on the futures contracts and the underlying spot BTC.While details of the trading platform are yet to be finalized, CME’s potential entry emphasizes the continued interest of major Wall Street players in the crypto sector.This development follows the SEC’s approval of Spot Bitcoin exchange-traded funds (ETFs) in January, signaling the increasing acceptance and integration of digital assets into traditional financial markets.Recent SEC filings from various Wall Street financial institutions, such as Morgan Stanley and Millennium Management, reveal that many of these firms have exposure to crypto-related investment products. Vetle Lunde, a senior analyst at K33 Research said.“According to 13F reporting, 937 professional firms were invested in U.S. spot ETFs as of March 31. In comparison, gold ETFs had 95 professional firms invested in their first quarter (Bitwise). Retail owns a majority of the float. Professional investors held exposure of $11.06bn by the end of Q1, representing 18.7% of the BTC ETF AUM.”Meanwhile, CME’s entry into spot Bitcoin trading could pose significant competition for Binance, the largest crypto exchange by trading volume, which currently faces regulatory scrutiny worldwide. Binance had been the top Bitcoin futures platform globally prior to CME’s surge in activity.According to Kaiko data, Binance accounts for 56% of BTC spot trading, followed by Coinbase and Bybit at 10.1% and 10.5%, respectively.Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.Also known as “Akiba,” Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change. Follow us on X for instant crypto news and insights updates.Miller argued that the flagship crypto remains vastly undervalued and predicts a major shift in global capital governance.The report highlights significant gaps in law enforcement’s ability to track and recover illicit digital assets moved via privacy coins, layer-2 networks, and crypto mixers. DeFi Technologies recently adopted BItcoin as its primary treasury reserve asset.Japanese firm Metaplanet saw its stock surge 10% after its most recent Bitcoin acquisition.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
