The Financial Times has reported that the CME Group, the world’s largest futures exchange, is working on a plan to offer spot trading for Bitcoin. The exchange has reportedly held discussions with traders who are interested in buying and selling cryptocurrency on a regulated marketplace. While the plan is not yet finalized, the intention is to run CME’s spot trading business through the EBS currency trading venue in Switzerland.

However, there is skepticism from a crypto trading executive who questions the efficiency of operating Bitcoin trading on two different markets with CME in Chicago and EBS in Switzerland. They struggle to see how the exchange would be able to take advantage of all available efficiencies.

Currently, CME already offers Bitcoin futures trading. The addition of spot trading for the top crypto asset would make it easier for investors to engage in basis trades, a popular trading strategy among professional crypto traders. This strategy involves borrowing funds to sell futures while simultaneously buying the underlying asset, profiting from the price difference.

The move towards spot trading comes at a time when Bitcoin exchange-traded funds (ETFs) are gaining popularity among wealthy investors. According to Bloomberg senior ETF analyst, Bracebridge Capital, a Boston-based hedge fund, holds significant investments in various Bitcoin ETFs.

In addition, banking giant JPMorgan Chase has disclosed that it holds spot Bitcoin ETFs worth $760,000 on behalf of its clients. These holdings are spread across different ETFs from BlackRock, ProShares, Fidelity, Grayscale, and Bitwise.

Wells Fargo, another major bank, also holds a significant number of shares in the Grayscale Bitcoin Trust.

As the interest in Bitcoin and cryptocurrencies grows, it is important for investors to conduct their own research and due diligence before making any high-risk investments. Transfers and trades are done at one’s own risk, and any losses incurred are the responsibility of the individual investor. The Daily Hodl does not provide investment advice or act as an investment advisor.