CME is very much making its way into the crypto market, whereas many of the smaller traders are still only keeping an eye on price movements.
On the 9th of February, CME Group will offer futures contracts for Cardano, Chainlink, and Stellar. This provides a larger market for investors in altcoins and hints that more people are gradually turning their attention to cryptos besides Bitcoin and Ethereum, the two giants.
For ADA, LINK, and XLM it’s more than just being included in the list; it positions them in the same futures market as Bitcoin and Ethereum which have been price determining.
CME Futures Indicate Shift from Retail to Institutional Traders
CME Group futures are listed on regulated exchanges so the large institutions can participate, as they are not allowed to trade on unregulated crypto platforms. This arrangement potentially alleviates the worries of traditional investors about legal issues.
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The contracts also allow hedge funds and asset managers to make speculative positions without actually owning the underlying assets. This reduces the custody issues which could have prevented the entrance of large players.
CME futures facilitate hedging and risk management, which are the top activities of professional traders. Besides that, they bring in more liquidity and market makers, thus improving the market.
Price is also crucial. CME futures set prices that are monitored closely by banks, funds, and regulators, which indirectly influence the perception of the asset.
Typically when CME launches a new digital currency product, the concerned asset becomes something that serious financial institutions talk about. This also changes its trading and perception.
