The leading US cryptocurrency exchange, Coinbase’s shares fell by 9% to $199.17 on Thursday morning as the rumors of bitcoin trading by the Chicago Mercantile Exchange (CME) spread, which was fueled by high client demand for cryptocurrencies.
Cryptocurrencies gained, as the major index tracking top digital coins rose 0.25%. undefined undefined 5%, in a positive inflation report on Wednesday. COIN shares have rallied 29% so far this year, in line with the crypto market’s bullish movement.
CME, a leading futures exchange, is now making its way into the crypto market, posing a possible threat to Coinbase’s position as the number one crypto exchange in the U.S. Regulators consider CME as an important financial market, hence, rigorous supervision and government support during crises.
The CME is hosting meetings for traders interested in regulated bitcoin trading to address the trust challenges in crypto exchanges. Spot bitcoin ETFs have with over 500 institutions investing $10 billion in just three months, alongside $40 billion from retail traders.
In essence, Coinbase’s stock drop is a market reaction to CME’s possible entry into spot bitcoin trading as more and more institutions show interest in cryptocurrencies.
Also Read: Chicago-based CME Prepares to Launch Bitcoin Trading Soon
