Google invests $1 billion in exchange that trades Bitcoin futures
The investment was also confirmed by CME itself. The company revealed that the money will be used to transfer its main trading systems to the cloud. This includes Bitcoin futures (BTC) trading.
According to the WSJ, the partnership between Google and CME will have a minimum term of ten years. During this period, the exchange intends to expand its services to handle trillions of dollars in trading.
On the other hand, Google will assist the exchange in implementing new technologies, such as artificial intelligence.
CME is one of the world’s largest futures exchanges, with a market capitalization of nearly $80 billion. While Google Cloud is the fourth largest cloud provider, holding 6.1% share of the global market (2020 data).
Launched over a century ago, CME offers its clients exposure to a variety of markets, from crude oil and gold to stock market futures.
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The exchange was also one of the first platforms to offer cryptocurrency futures trading. BTC futures began trading at CME in late 2017.
Since then, the BTC futures index has become an international price reference for the cryptocurrency, especially for institutional investors. In fact, the three BTC ETFs approved in the United States in 2021 use CME contracts to expose themselves to cryptocurrency.
Currently, CME facilitates business for various financial market institutions. Its main client is BlackRock, the largest asset manager in the world. The manager also uses the CME index to invest in BTC.
After entering the BTC market, CME also created Ether (ETH) futures trades. More recently, it doubled by launching future ETH min contracts.
In short, Google not only invested in a solid company with a track record, it also gained exposure to the cryptocurrency market. So far, the exchange has registered trading volumes of more than 675,000 ETH futures contracts. Each contract contains around 49 ETH, so the sum corresponds to 33.6 million ETH, or $150 billion.