Bitcoin steadies above $73k as CME launches 24/7 crypto futures trading

CME Group said it is expanding its crypto derivatives lineup this summer, adding bitcoin volatility futures, crypto index futures and 24/7 trading, as volumes rise in its bitcoin and ether futures. CME reported average daily crypto futures/options volumes up 38% to 266,900 contracts and open interest up 18% to 274,500. The exchange also plans Nasdaq CME crypto index futures from June 8.

CME Group CEO Terry Duffy told a conference that U.S. regulators are creating systemic risk by approving perpetual crypto futures (“perps”), which he said typically use high leverage (often up to 50:1) and automatic liquidations. Reuters reports Coinbase and Kalshi plan to launch perps after CFTC approval. Duffy criticized the CFTC’s case-by-case process and said institutional demand is limited.

Exchange and derivatives stocks fell after the CFTC approved perpetual bitcoin futures for Kalshi, raising concerns that “perps” could expand into other asset classes and compete with traditional exchange products. CME dropped 3%+ (about 9% over two days), Cboe fell 8% (week losses 16%+), and Intercontinental Exchange and Nasdaq also declined. Analysts cited potential retail displacement, though some said risks are manageable.

The article says U.S. CPI inflation rose at the fastest pace in three years, driven by higher oil prices amid the U.S.-Iran conflict. It cites CPI up to a 3.8% annualized rate in April and PPI up to 6% with energy up 22.7%. CME FedWatch shows a 68% chance of a rate increase by end-2026, which could pressure the S&P 500.

Fed Governor Christopher J. Waller said in May 22 remarks that the Fed’s current “wait-and-see” stance is appropriate, but he can’t rule out rate hikes if inflation risks from the Iran war don’t abate. He cited “inflation is not headed in the right direction” and high oil prices. Markets now price a 43% chance of a 25 bp hike in December, with the FedWatch tool.

PNC Financial Services Group Inc. increased its stake in CME Group Inc. by 3.5% in the fourth quarter, bringing its total holdings to 169,275 shares valued at $46.23 million. Other institutional investors also adjusted their positions in the financial services provider. CME Group recently announced a quarterly dividend of $1.30, and analysts maintain a "Moderate Buy" rating for the stock, with insiders selling a significant number of shares in recent months.