The institutional herd is here: Bitcoin volume on CME, LMAX hits new records
The daily volume of the CME Bitcoin (BTC) futures market and LMAX achieved a new all-time high on Jan. 4. The data show that the institutional demand for BTC is rapidly surging as major public funds continue to accumulate.
Institutional appetite for Bitcoin is accelerating
According to analysts at Arcane Research, the daily volume of LMAX Digital reached a record-high at $2.62 billion.
LMAX is a trading platform that tailors to institutional and accredited investors, unlike retail-focused platforms such as Coinbase and Binance. Arcane Research’s head of research Bendik Norheim Schei wrote:
“Want another ‘Institutional investors are here’ chart? Here’s the daily volume on the institutional platform LMAX Digital. New all-time high volume of $2.6 billion yesterday.”
During the same period, the CME Bitcoin futures market also achieved an all-time high volume at $2.7 billion in dollar terms.
On CME, traders use Bitcoin-backed contracts and as such, when the price of Bitcoin increases, so does the value of contracts.
On Jan. 5, Anthony Scaramucci, the former White House Director of Communications, said his hedge fund SkyBridge entered a $300 million Bitcoin position from November to December of last year. He said:
“We @SkyBridge entered the #bitcoin market in Nov/Dec with a now ~$300mm position, and today launched a #bitcoin fund offering for accredited investors. We believe we’re in the early innings of a new asset class with tremendous upside.”
With SkyBridge’s investment in Bitcoin, nine funds now hold $23 billion worth of Bitcoin, according to technology researcher Kevin Rooke.