Terrence A. Duffy, president and CEO of leading derivatives exchange Chicago Mercantile Exchange (CME), revealed that his firm has seen some growth in demand for its crypto products since November.
during a recent interview With CNBC’s Closing Bell, Duffy made the disclosure when asked about the status of his institutional lawsuit. Bitcoin futures product.
CME Records Rise in Crypto Products
CME’s chief executive believes that market conditions in 2022 could have affected institutional demand for its products.
With the collapse of the Terra ecosystem in May, the insolvency of FTX in November, and a series of bankruptcies in a contagion that followed, many critics would have thought that institutional interest in crypto assets would wane significantly.
However, Duffy revealed that the opposite was true, as the demand for CME crypto derivatives has increased since November.
“It’s really been interesting what’s going on with Bitcoin after we saw what happened late last year with some of the issues that were going on in the industry. The entire cryptocurrency industry suffered a bit and then we saw a rally that started in our operations around November and December and continues here,” the CEO said.
Duffy opined that customer trust in CME may also have helped boost sales. Due to the lack of regulatory clarity in the crypto industry and its entities, clients may opt for regulated markets like CME.
“I think people are looking at the regulated market, especially the institution. You know, if we’re going to trade these things, we’re going to do it on a regulated exchange like CME. So we’ve actually seen an increase in our crypto products, so we’re very pleased with that,” he added.
2022 was the best year in CME history
Meanwhile, despite the intense crypto winter, CME revealed During its fourth-quarter 2022 earnings conference call on February 8, that past year was the best in company history, posting significant growth.
The company’s financial products were responsible for the growth, with revenue increasing 5.27% from 2021 to $1.21 billion and a record earnings per share of $1.92.
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