Institutional Interest Propels CME Crypto Options to New Heights

Institutional Investors Boost CME Crypto Derivatives

Institutional investors are significantly increasing their participation in CME Group's regulated crypto derivatives markets, setting unprecedented records in futures and options linked to Ethereum (ETH), Solana (SOL), and XRP.

Since October 10, CME has reported a 27% rise in open interest across its crypto futures and options. This surge is attributed to a migration from offshore markets following recent liquidations.

Record Highs in Crypto Futures

On Tuesday, open interest in ETH futures reached an all-time high of 48,600 contracts. Similarly, SOL and XRP futures hit records of 20,700 and 10,100 contracts, respectively.

Options open interest also peaked at $9 billion, highlighting a trend towards using CME's regulated products over offshore alternatives. CME's Micro Ether futures were the second most traded on Tuesday, reflecting this shift.

A CME spokesperson noted, "The top 10 days of open interest were all in October, demonstrating strong conviction and expanding participation in the regulated crypto derivatives market."

Growth Beyond Bitcoin and Ethereum

This trend aligns with CME's third-quarter results, where combined crypto futures and options volume surpassed $900 billion, with average daily open interest reaching $31.3 billion. September saw a notional open interest peak of $39 billion, with over 1,000 large open interest holders active during this period, indicating a broadening usage of these products.

CME's solana and XRP futures have also gained traction since their launch earlier this year. By September, solana futures' open interest exceeded $2.1 billion, and XRP reached $1.4 billion.