Open Interest on CME's Bitcoin Futures Hits $237 Million

Francisco Memoria

The trading volume and open interest on CME Group’s Bitcoin Futures contracts appear to be close to a new all-time high, as data from the firm’s website shows 5,328 contracts in open interest.

As each CME Bitcoin Futures contract represents 5 BTC, which at press time are worth $43,900. In total, the 5,328 contracts represent 26,640 bitcoin, worth around $234.2 million. The figure is higher than any other monthly close the CME has reported since its Bitcoin Futures contracts launched in December 2017, with the largest open interest of 2019being seen in July with 5,252 contracts.

Earlier this month, open interest hit an all-time high of 5,400 contracts according to data from the U.S. Commodity Futures Trading Commission (CFTC). Nevertheless, on social media the CME Group reported a new high when it comes to large open interest holders, referring to entities holding at least 25 BTC ($220,000).

Overall interest in cryptocurrency derivatives has seemingly been growing recently, as institutional investors’ appetite for cryptocurrencies keeps growing. Earlier this week, the CME Group launched its options on bitcoin futures, and traded a total of 55 options contracts in its debut session.

The contracts were equivalent to 275 BTC or $2.33 million. The trading volume saw Tim McCourt, global head of equity index products at the CME, note it “takes time to grow any new market,” and added the CME was “pleased with the response from customers and market participants so far.”

As CryptoGlobe report, cryptocurrency asset manager Grayscale recently posted a record-breaking year with $600 million inflows, exceeding the cumulative amount it saw from 2013 to 2018. Grayscale’s Michael Sonnenshein commented on the results saying that regarding the questions of where are the institutional investors in crypto, the answer is now “they’re here and showing up in a meaningful size.”

Featured image via Unsplash.

Bitcoin Is ‘Worthless’ Says John McAfee After Predicting It Would Hit $1 Million

Francisco Memoria

Eccentric cybersecurity entrepreneur John McAfee has bashed bitcoin claiming the flagship cryptocurrency is “worthless,” even though he had predicted it would reach $1 million by the end of this year, before calling off his prediction.

On social media, McAfee responded to a user who said he believes the cybersecurity expert was only followed because of his bitcoin price prediction, to which McAfee responded bitcoin is “worthless.”

In response various users criticized McAfee for past predictions he got wrong – including for various altcoins – while others tried to defend BTC has value. McAfee is well-known in the cryptocurrency space for a famous $1 million bitcoin price prediction.

On social media, the eccentric entrepreneur initially claimed, in July 2017,  the price of one bitcoin would be above $500,000 by the end of 2020. In November ,when the price of bitcoin was moving toward its $20,00 all-time high by December 2017, McAfee said he predicted the $500,000 mark based on “a model that predicted $5,000 at the end of 2017.”

As such, he revised his prediction to say BTC would hit $1 million by the end of 2020. I January of this year, after the cryptocurrency endured an year-long bear market and subsequently failed to recover to its previous all-time high, McAfee claimed the prediction was a “ruse to onboard new users” and dropped the prediction.

In a tweet revealing the “ruse” McAfee claimed bitcoin is “ancient technology” as newer blockchains have “privacy, smart contracts, distributed apps and more.” McAfee would later on criticized the flagship cryptocurrency, calling it “old” and “clunky.” Per his words, bitcoin is the “Hotmail of crypto.”

Notably billionaire Chamath Palihapitiya, the CEO of Social Capital, has recently argued that the price of bitcoin may increase significantly over the next decade to reach $1 billion per coin.

Featured image via Unsplash.