CME Group Applies to Increase the Upper Limit of Bitcoin Futures Contract

Bitcoin futures trading in the US is becoming increasingly popular. The Chicago Mercantile Exchange (CME) intends to increase the investment ceiling of a single investor. From the current 1,000 contracts per month, the proposal is increased to 2,000 contracts. CME Group applied to the US Commodity Futures Trading Commission (CFTC) yesterday. If the committee does not object to this proposal, it will take effect at the end of September.

As demand for bitcoin futures rose, the newly opened contract in CME Group reached 6,100 in July, so CME Group hopes to increase the investment ceiling for single investors. This means that the investor’s futures contract, which is now equal to 5,000 bitcoins, will double to 10,000 bitcoins. If it is calculated at the price of 4 pm, it is about 130 million US dollars.

A spokesman for the CME Group said that the application for an increase in the investment ceiling was not only the bitcoin futures market under the CME Group, but also the significant growth and acceptance. It was also based on the exchange’s analysis of the bitcoin market. It is worth noting that the CFTC sets an upper limit on futures positions to prevent excessive speculation in any goods that support futures products. Therefore, when CME Group proposed to increase the ceiling, it also reflects that the Bitcoin futures market is beginning to mature, and investors are more aware of Bitcoin futures products.

At the end of 2017, CME Group launched a cash-settled Bitcoin futures contract, and it is currently the only exchange in the United States that provides related investment products. Since 2019, the trading platform has more than 1,200 traders, and the average daily trading volume of the daily contract has reached 7,100.