The markets surrounding Bitcoin may be incurring increasing maturity, as the Chicago Mercantile Exchange (CME) is now opening that gates for traders to begin holding a significantly higher number of open BTC contracts than is currently allowed.
This change comes about as Bitcoin’s hash rate just set a fresh all-time-high and may be emblematic of improving fundamental conditions that will ultimately allow BTC to surge to new highs.
CME Futures Traders Will Soon Be Able to Hold 2x the Amount of Bitcoin Contracts
Currently, futures traders on the CME are able to hold 1,000 spot contracts per month, and the upcoming potential increase – should it be approved by the CFTC – will allow traders to hold up to 2,000 spot contracts per month.
Each contract is worth five BTC, so assuming that the increase is allowed, traders will be able to hold positions worth a maximum of 10,000 Bitcoin.
In an application to the CFTC, the CME Group notes that the “increased spot month limits shall go into effect at the close of trading on Monday, September 30, 2019 for the October 2019 contract month and all contract months thereafter.”
This change signals that the group believes that there is room…
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Author: Cole Petersen