Quick Take:

• CME Group mulls over introducing bitcoin spot trading, FT reports.
• Discussions ongoing with traders, but final rollout plan yet to be determined.

The Chicago Mercantile Exchange (CME) Group is reportedly exploring the possibility of adding bitcoin spot trading to its existing futures product lineup, as per insights from the Financial Times, citing sources familiar with the discussions.

In conversations with traders who prefer regulated platforms for cryptocurrency dealings, CME Group is deliberating on the introduction of bitcoin spot trading. However, the exact timeline and details of the rollout remain to be finalized, as outlined in the report.

The potential launch of bitcoin spot trading on CME would open avenues for traders to engage in basis trades, leveraging the price discrepancies between futures contracts and the actual spot prices of the underlying asset. CME Group, known for operating the world’s largest futures exchange, already facilitates trading in bitcoin futures.

If the plan materializes as reported, CME would present another avenue for institutional investors on Wall Street to gain increased exposure to digital assets, further complementing the growing landscape of 11 spot bitcoin exchange-traded funds approved in the United States in January.

In spot trading, assets are exchanged immediately, typically on the spot date. For bitcoin, this translates to direct conversion into fiat currency or other cryptocurrencies at prevailing market rates, with instant asset transfer. Most cryptocurrency exchanges, such as Coinbase and Binance, offer spot bitcoin trading services.

Spot bitcoin exchange-traded funds have surpassed initial expectations, amassing $12.15 billion in net inflows since their debut in January. The approval of these ETFs by the U.S. Securities and Exchange Commission played a significant role in propelling bitcoin’s value to a new peak of over $73,000 in March.

At the time of publication, bitcoin’s price has surged by 6.72% over the past 24 hours, reaching $65,995.