Rosenblatt sees CME Group as a winner from bitcoin ETF approval

Rosenblatt analyst Andrew Bond says CME Group will benefit most among the exchanges from the SEC’s spot bitcoin exchange traded funds approval “as market makers look for a liquid market and singular pricing hub to hedge risk.” CME continues to grow its open interest leadership in bitcoin with over 30% market share, more than doubling from 13% at this time last year, the analyst tells investors in a research note. The firm thinks the futures markets for bitcoin will become more concentrated as the asset class becomes more institutionalized. While not a driver of significant revenue growth yet for CME it’s likely to grow meaningfully over time, contends Rosenblatt. The firm’s view of the asset class remains the same. The supply of bitcoin is not going to increase, it is actually likely to shrink as large holders “HODL,” or hold on for dear life, writes Rosenblatt. Meanwhile, demand is “about to increase exponentially,” it adds.