CME will increase the limit on the amount of open positions on bitcoin to 10,000 BTC

The Chicago Mercantile Exchange (CME Group) will increase its monthly limit on open positions to 10,000 BTC or 2,000 contracts.

Increased spot-month position limits in CME Bitcoin futures will be available Sept 30, pending reg review. Limits will increase to 2K contracts, equal to 10K bitcoin, to provide customers greater flexibility to trade and hedge bitcoin price risk. #bitcoin https://t.co/8lu1hRYNDW pic.twitter.com/z0ZSUgnGyx

– CMEGroup (@CMEGroup) September 12, 2019

Innovations are scheduled for September 30, but they require CFTC approval.

At the moment, traders do not hold the maximum number of positions even at current limits (1000 contracts or 5000 BTC). CME is confident that the growing interest in flexible risk hedging for bitcoin is yet to come.

Limits on the amount of open positions are set by the CFTC to prevent market manipulation. If the agency approves the changes, it actually recognizes that the likelihood of excessive speculation in the bitcoin market has decreased.

Recall that in 2019, an average of 7,237 Bitcoin contracts were concluded daily on the CME, and the average daily trading volume was $ 370 million (as of the end of August).

Also in the CME listing , bitcoin options may soon appear .

Subscribe to BlockchainJournal news on Telegram: BlockchainJournal Feed – the entire news feed, BlockchainJournal – the most important news and polls.