CME says Q3 open interest for bitcoin, ether derivatives hit all time highs

The CME Group, which operates the Chicago Mercantile Exchange, told Blockworks Tuesday that volumes and open interest for crypto derivatives soared in the third quarter of 2023. 

In fact, with the ongoing bitcoin rally, CME Group said via email that Monday’s “trading session marked a record [open interest] for CME Group Bitcoin futures at 20K contracts.”

Open interest simply denotes the total number of active derivatives contracts (futures or options) held by traders. The metric demonstrates how many people in the market are interested, as the term suggests, in holding a position.

But Monday’s trading day, when bitcoin (BTC) flashed up from around $30,500 to nearly $35,000, was no fluke according to CME Group. 

The third quarter set a record average of 15,800 contracts for bitcoin futures, up 11% quarter over quarter. Open interest for ether futures and options jumped 22% from the second quarter. 

Ether options contracts really skyrocketed in the third quarter though, increasing 75%. Open interest also soared 55% higher on a quarterly basis.

Read more: $325 million in shorts liquidated amid crypto-wide market rally

CME Group noted that this derivatives frenzy occurred despite major price declines in BTC and ether (ETH) in the third quarter.

“While volatility and prices have remained mostly range bound along with trading volumes this year, CME Group continues to see increases in open interest across the Cryptocurrency suite,” analysts wrote in a newsletter.

Obviously, the environment is different now, with BTC and ETH each trading on Coinbase at elevated prices of around $34,500 and $1,800, respectively, at the time of writing.

---

Get the news in your inbox. Explore Blockworks newsletters:

• Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
• Empire: Start your morning with the top news and analysis to inform your day in crypto.
• Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
• 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
• Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
• The Drop: For crypto collectors and traders, covering apps, games, memes and more.
• Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.