Cointime

Download App
iOS & Android

CME, Where Institutions Trade Bitcoin Futures, Flipped Binance. Is That as Bullish as It Sounds?

Validated Individual Expert

CME Group is now the place to trade bitcoin futures, apparently. For the first time in months, if not years, CME is now seeing more BTC futures trading than on the world’s largest cryptocurrency exchange, Binance. This flippening, which has happened before, but doesn’t happen often, is often seen as a sign of increasing institutional interest in crypto.

CME, which incidentally but (please believe me) unrelatedly is the sponsor this week for The Node newsletter, is often seen as The Exchange for Grownups. Whereas, with Binance and co., I think very few people are putting on ties to go to work to trade bitcoin perps on a native crypto exchange.

See also: Ethereum Futures Are Now Trading on CME

Don’t just take my word for it, CoinDesk’s markets guru Omkar Godbole said CME is “considered a proxy for institutional activity” in crypto, on CoinDesk TV’s “First Mover.” “What we are seeing right now is a good old pump of open interest on the CME futures,” he said. Open interest refers to the dollar value of existing futures contracts.

Perhaps this interest is being driven by bitcoin’s price, which has rallied over 100% year-to-date, and institutions want a little bit of the action. Or, it’s because they are taking bets that the narratives around a potential spot bitcoin exchange-traded fund (ETF) being listed by year’s end or the Bitcoin halving on the docket for next year will spur even more buying.

Futures are a type of derivatives contract that requires buyers to purchase bitcoin at a predetermined price at a later date. They’re essentially a hedge against a future price movement, and are commonly used to bet that you can buy an asset today for less you could at a later date.

And lot’s of people seem to think bitcoin has legs to run, yet. Bitwise Chief Investment Officer Matt Hougan essentially said that all the bitcoin ETF hype is not fully “priced in” yet. To be sure, the chief investment officer of a crypto investment company has many incentives to believe something like that and drum up support for that thesis.

It’s also a kettle-of-worms getting into the question of whether the Bitcoin halving is priced in, especially at this point, when it is still six months away. There’s certainly something reasonable about the idea that the fewer new bitcoins released into circulation (as part of the “mining subsidy, which is halved programmatically every four years — hence “the halvening”) will be good for bitcoin’s price. It’s the same theory of supply and demand behind the idea that bitcoins, capped at 21 million coins, are scarce and therefore valuable.

But, if you believe in efficient markets, then you’d have to think a pre-scheduled event that 99.9% of all bitcoin holders know about and eagerly await would have to be “priced in.” Then again, it’s hard to say crypto markets are efficient. And the same guys who thought up the Efficient Markets theory also said it’s impossible to find a $10 bill on the street, because, if it was there, it’d already be pocketed by someone. Yet I find (and lose) money all the time, and crypto traders sometimes make money off of market inefficiencies.

Anyway, to make things even more complicated, Godbole said that typically when open interest in bitcoin futures is growing on CME, it’s an indicator that bitcoin’s price is about to drop. This isn’t a hard-and-fast rule, but has been an observable trend following the few times when CME flippened Binance. “Both times, CME's move to the top spot marked price top,” he said.

What’s more, while CME’s open interest have grown the flippening this time around may have multiple factors. First, Binance’s market share of futures contracts compared to the CME has been on a long-term decline, perhaps due to the exchange’s legal troubles in the U.S. and E.U.

See also: Citigroup to Trade Bitcoin Futures on the CME?

And lastly, there’s also a difference between the types of derivatives traded on CME, where a few traders took out bullish bets, and on Binance, which actually had a high amount of open shorts (bearish bets on BTC’s price) that were liquidated during the recent price rally, Godbole said.

“So, while we're seeing a spike in CME contracts, that doesn't necessarily mean that the futures market is suddenly exploding,” he said.

What does this all mean for bitcoin? Are the institutions here? Will the price continue to climb? Dear reader, if I knew I wouldn’t be writing about it — I’d be gambling.

Comments

All Comments

Recommended for you

  • ETH breaks through $2100

    market shows ETH breaking through $2100, currently at $2100.24, with a 24-hour increase of 7.65%. The market is highly volatile, please manage your risks accordingly.

  • BTC falls below $66,000

    the market shows BTC falling below 66,000 USD, currently at 65,996.42 USD, a 24-hour decline of 2.35%, with significant market fluctuations, please manage your risk properly.

  • YesGo Makes Its Public Debut: Joining Forces with Ecosystem and Industry Leaders to Usher in a New Era of On-Chain Native Commerce

    Hong Kong, February 11, 2026 – As one of the most visionary cross-sector dialogues held during Hong Kong Consensus Week, the YesGo Ecosystem Partner Meeting concluded successfully yesterday. This closed-door event, spearheaded by YesGo and co-hosted by Nexus Chain and compliant digital asset exchange CoinMy, brought together a select group of global ecosystem partners, industry KOLs, and media representatives.

  • The number of Americans filing for unemployment benefits last week was 227,000.

     initial jobless claims in the United States last week were 227,000, estimated at 224,000, previous value was 231,000.

  • BTC breaks through $68,000

     the market shows BTC breaking through $68,000, currently at $68,023.93, with a 24-hour decline of 1.36%. The market is highly volatile, please manage your risk accordingly.

  • [Consensus HK] ENI CEO Arion Ho: Decentralization is an Engineering Choice, Not a Slogan

    At the Consensus Hong Kong 2026 summit, ENI Founder and CEO Arion Ho joined the DeFi Lead at CoinDesk and executives from Paradigm and Blockdaemon to debate the future of DeFi decentralization. Ho delivered a sharp critique of the industry’s current trajectory, asserting that decentralization should never be about "slogan-style freedom," but is fundamentally a rigorous engineering choice.

  • Trump praised the non-farm payroll data and urged the Federal Reserve to cut interest rates to the "lowest in the world."

    US President Trump posted on social media, "Employment data is excellent, far exceeding expectations! The US should pay much less interest on borrowing costs (bonds!). We have once again become the world's number one power, and therefore deserve the lowest interest rates ever. This will bring at least one trillion dollars in interest savings annually — the budget will not only be balanced but will have a substantial surplus. Wow! The golden age of America has arrived!!!"

  • BTC falls below $67,000

    the market shows BTC falling below $67,000, currently at $66,991.58, with a 24-hour decline of 3.41%. The market is highly volatile, please manage your risk accordingly.

  • BTC falls below $69,000

     the market shows BTC fell below 69,000 USD, currently at 68,996.18 USD, with a 24-hour decline of 2.21%. The market is highly volatile, please manage your risk accordingly.

  • BTC falls below $70,000

     the market shows BTC falling below $70,000, currently at $69,990, with a 24-hour decline of 1.04%. The market is highly volatile, please manage your risk accordingly.