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Bitcoin premiums on the rise as CME’s dominance continues

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Bitcoin’s price is undergoing some consolidation, but Bitcoin derivatives have been projecting positive sentiment for some time now. According to the latest edition of Arcane Research, Bitcoin premium rates are high for June Futures contracts.

Despite a stagnant market phase for the king coin, this development essentially means that institutional traders are more positive about Bitcoin’s price movement.

Source: Arcane Research | BTC Futures Contracts Settlement Prices [January – March]

Arcane Research stated that there is bullish sentiment among institutional investors in terms of BTC Futures premium rates for June contracts. However, the same cannot be said for January and March. The study added,

“It seems like investors are staying bullish on bitcoin in the mid-term, as the BTC futures premium rates for June contracts continue up this week. However, the short-term view looks more bearish, as both January and March premium rates fall this week.”

CME indicates long term bullish sentiment among investors 

Besides, CME’s dominance in the space has been quite consistent. Just two years since it launched cash-settled Bitcoin Futures, the Chicago-based CME has established itself as a key player in the crypto-derivatives sector.

This is evident by the fact that CME traders are trading BTC at higher premiums than any other platform. In line with the same, the study found that June 2020 Futures contracts on CME are now close to a 5% premium, while on other platforms it is 3.6%.

The study also noted,

“While the premium of March contracts looks more align between the platforms this week, the gap for June contracts is increasing. The annualized premium rates on CME are now equal for both March and June contracts.”

Source: Arcane Research | Premium rates for BTC contracts



Chayanika is a full-time cryptocurrency journalist at AMBCrypto. A graduate in Political Science and Journalism, her writing is centered around regulation and policy-making regarding the cryptocurrency sector.
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