CME reportedly in talks with traders to open Bitcoin trading

The Chicago Mercantile Exchange is said to be focusing on launching Bitcoin trading on its platform to capitalize on the growing demand.

CME Group, the world’s largest futures exchange, appears to be considering launching Bitcoin trading services as interest in digital assets on Wall Street continues to grow, the Financial Times has learned from sources familiar with the matter.

The Chicago-based exchange is reportedly in talks with investors interested in trading the largest cryptocurrency by market cap, although the plan has not yet been finalized. As of press time, CME has not made any public statement on the matter.

The talks come after the US Securities and Exchange Commission (SEC) gave the green light for spot Bitcoin exchange-traded funds (ETFs) to list on CME alongside existing crypto futures products. While the initial influx of capital into spot Bitcoin ETFs from institutional investors such as the Wisconsin Board of Investment and BNY Mellon was notable, second sentiment in the market appears to have calmed, with almost no inflows into many ETF issuers.

If CME continues its spot trading business, it will operate through its EBS exchange trading hub in Switzerland, sources say, citing the region’s robust regulations governing crypto trading and storage.

After a decade-long search, the U.S. Securities and Exchange Commission (SEC) approved multiple spot Bitcoin ETFs for listing on all registered national exchanges in the U.S. in early 2024, including Nasdaq, NYSE, and CBOE.

While the SEC has approved several spot Bitcoin ETFs, the watchdog’s reluctance to quickly approve spot Bitcoin ETF options has raised concerns about whether options on spot crypto ETFs would be subject to the same regulations as stocks.