CME plans to launch Bitcoin spot trading

The Chicago Mercantile Exchange (CME Group) plans to launch bitcoin spot trading. Three sources familiar with the negotiations said that CME has discussed with traders who want to buy and sell cryptocurrencies in regulated markets. The plan has not yet been finalized, but if implemented, it will mark a further invasion of the digital asset industry by major Wall Street institutions. CME declined to comment.

After introducing bitcoin futures trading, CME has provided investors with easier access to so-called basis trading with the introduction of bitcoin spot trading. Basis trading is a common strategy for professional bitcoin traders and is also the main trading method for the US Treasury market. It involves borrowing money to sell futures and buying underlying assets, and profiting from the small difference between the two. Most of the US Treasury basis trading takes place on the CME trading platform.