Tim McCourt: Bitcoin traders will increasingly ditch Deribit and BitMEX in favor of CME
The head of alternative investment products at the Chicago Mercantile Exchange (CME) Tim McCourt expects crypto traders to start moving their capital to a regulated exchange, leaving platforms such as Deribit and BitMEX, which originally come from the cryptocurrency space but still carry high risks and low security.
Commenting on the November data breach of 30,000 BitMEX users, McCourt said, “When users see such incidents, they start coming to CME because it is audited, transparent and regulated.”.
In addition to traditional financial institutions, hedge funds, and commodity traders, McCourt is seeing an influx of customers who are primarily interested in cryptocurrencies. He believes that previously, users did not always put security first when choosing a trading platform, but now they will do it more often..
He also reported that the average daily turnover of Bitcoin futures on the CME platform in 2019 was 6,500 contracts. As a response to the increased customer interest, CME will launch Bitcoin Options: “The level of participation in the context of the global client base, the growth in active positions, all these things indicate that we have managed to create a functional futures market. It would be wise to introduce options based on this futures market starting on January 13th. “.
The main interest in cryptocurrencies, according to McCourt, is still concentrated in Asia: “In bitcoin futures, we see a distribution of about 50-50 between users within the United States and beyond. I think the demand mainly comes from the Asian region. Cryptocurrencies are a hot trend in Asia. There is a high level of interest, high trading activity on both spot and derivatives platforms. So I think the demand is there too. Now it remains to figure out how to convert it to volumes. We’ll see in January “.