BlockFi Providing Liquidity For CME Bitcoin Futures
Bitcoin lending and savings firm BlockFi can now act as a liquidity provider for clients trading Bitcoin futures and options on the Chicago Mercantile Exchange (CME).
The partnership marks another step towards increasing Bitcoin’s (BTC) presence in traditional markets. And increasing liquidity will likely generate more interest from institutional investors, while also help legitimizing Bitcoin futures as a hedging option.
‘BlockFi actively provides liquidity to our counterparties to take long and short positions on Bitcoin,’ said BlockFi Chief Risk Officer Rene van Kesteren on the partnership. ‘Today, we can negotiate and submit Bitcoin futures and options block trades for clearing via CME Clearing, which represents a critical step in Bitcoin’s advancement with institutional investors.’
It’s clearly a step in the right direction for Bitcoin and the digital asset space at large. And the fact CME partnered with BlockFi of all the liquidity providers, enhances BlockFi’s brand and could lead to bigger investment as BlockFi looks to expand.
Speaking of the partnership, BlockFi CEO, Zac Prince said, ‘It’s an incredibly exciting time for the cryptocurrency sector, with institutional adoption and bullish sentiment growing steadily. We’re thrilled to announce our partnership with CME, which helps facilitate financing efficiency for institutional market participants.’
There Has Been Much Institutional Interest In Bitcoin
The interest in Bitcoin has ramped up this year. BlockFi has grown its brand awareness globally and expanded with a $50 million series c seed round earlier this summer.
BlockFi offers collateralized loans and an interest earning account, which savers can earn up to 8.6% APY, and the US-based crypto lender is operational in pretty much every jurisdiction globally.
But it’s not only BlockFi that is growing, it seems the Bitcoin and digital asset space has become talk of Wall Street again.
Former Goldman Sachs hedge fund manager, Raoul Pal has recently said he knows of a wall of money that is coming into the space. The macro strategist is well connected in the financial world, and has openly voiced his bullish views on Bitcoin.
Earlier this year, publicly funded MicroStrategy used $425 million of its liquid cash to buy Bitcoin. The software company was cash heavy and its CEO, Michael Saylor said he looked at the cash and realized he had a ‘melting ice cube’.
Saylor, was referring to inflation eating away at his company’s treasury, and after diving deep down the Bitcoin rabbit hole, he determined the only way forward for MicroStrategy was to adopt a Bitcoin Standard.
There have been several other public companies, that are now using Bitcoin as a reserve asset, and even banks are starting to show their interest.
JPMorgan recently launched a dedicated unit for blockchain and digital currency and investing, and has launched its own shitcoin (JPM Coin).
There are crypto banks launching soon as well, as Kraken Financial became the first cryptocurrency company to earn a banking charter. This was closely followed by Avanti Financial Group becoming the next ‘crypto bank’.
It’s All Falling Into Place
There was a time when banks and institutional exchanges wouldn’t touch crypto companies. Now crypto companies are providing liquidity to the biggest institutional trading platforms.
BlockFi’s partnership with CME is huge for the whole industry. And the lending and interest earning services BlockFi offers is going to be replicated by financial incumbents in the coming years.
BlockFi works with Gemini, both of which geared their brand towards compliance and regulation. Kraken and Avanti have also been rewarded for their diligence, and have moved the crypto space on massively this year.
The institutional wall of money is coming, and crypto companies are leading the way to custody it.
Author: Pablo Clarke
Where can I buy Bitcoin in Italy?
There are several reputable Bitcoin exchanges operating in Italy. However, the most recommended exchanges are Kraken or BlockFi. Or you can buy Bitcoin from Bitcoin marketplaces, such as LocalBitcoins or Paxful. All of these exchanges and marketplaces are global with high liquidity and excellent customer service. Check out our reviews on each platform.
Where can I earn free Bitcoin?
Nothing is really free, because even when you earn free Bitcoins you’re giving up your time, which is precious. But you can earn free Bitcoins. If you are a gamer, there are games like Bitcoin Bounty Hunt where you shoot your way to Bitcoin riches. Or there’s Carrot – a platform where you can earn free Bitcoin for doing tasks. Or you can save your Bitcoin in an interest bearing account and earn some Bitcoin interest. Be careful with interest bearing accounts, and only go with legitimate companies, though. I recommend Blockfi, you can read the review here.
Can I get rich from Bitcoin?
You can get rich from Bitcoin, but most people haven’t. Anybody who expects to get rich, especially from a little investment, will likely be disappointed. Bitcoin isn’t a get rich quick scheme, and should be seen as a risky and volatile asset that could bring gains for anybody who can stomach volatility. If you’re interested in and want to buy Bitcoin, you should really have a long term plan.
Can you buy less than 1 Bitcoin?
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis. There are many companies that have a system for dollar cost averaging (DCA). This is a great way to buy Bitcoin, and is known in the space as ‘Stacking Sats’. Basically, what you do is set up small automatic, recurring payments to buy Bitcoin (or sats), and you DCA over time.
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.