The Chicago Mercantile Exchange is reportedly exploring the possibility of offering Bitcoin trading to capitalize on the surging demand for the digital asset.

The Chicago Mercantile Exchange (CME) is reportedly planning to launch Bitcoin trading, aiming to capitalize on the burgeoning demand for Bitcoin among Wall Street fund managers this year. The Financial Times disclosed on Thursday that the CME has been in discussions with crypto traders about establishing a regulated marketplace for buying and selling Bitcoin. While plans are still in the preliminary stages, the potential launch of Bitcoin trading by the CME signifies an ongoing push from major financial institutions into the crypto landscape.Following the SEC’s approval in January for exchange-traded funds tracking Spot Bitcoin, the CME is reportedly considering offering its potential spot trading service through EBS, a Swiss platform renowned for its stringent regulations on crypto asset trading and storage. The inclusion of spot Bitcoin trading alongside existing Bitcoin futures offerings would enable investors to seamlessly conduct “basis trades.”Basis trades involve borrowing funds to sell futures contracts while simultaneously purchasing the underlying Bitcoin, with the aim of profiting from the slight price differential between them. This strategy is already widely employed in the US Treasury market, and a significant portion of such trades occurs through CME platforms.CME has ascended to become one of the world’s leading Bitcoin futures markets, surpassing Binance. This surge in popularity reflects a renewed wave of institutional investor interest in capitalizing on Bitcoin’s volatility. A 2020 study by Bitwise Asset Management revealed that the CME Bitcoin futures market consistently outpaces the spot market.In an effort to enhance transparency and foster trust in cryptocurrency trading, CME Group has collaborated with CF Benchmarks. Together, they have developed standardized reference rates and spot price indices for popular cryptocurrencies like Bitcoin and Ether, providing a clear and reliable reflection of their values.