Bitcoin futures shift as Binance overtakes CME in open interest

The collapse of the basis trade

Binance reclaimed dominance in Bitcoin futures open interest from CME Group, holding 148,500 BTC ($9.6 billion) against CME’s 102,840 BTC ($6.7 billion). This reversal follows five consecutive months of decline for CME open interest, which reached its lowest level since February 2024. The shift follows the collapse of the cash and carry basis trade. As Bitcoin prices moved from $120,000 to the $60,000 to $80,000 range through the first half of 2026, the annualized three month basis on CME fell to roughly 3%, which is below the 3.8% yield on two year U.S. Treasuries. Because these yields dropped below risk free government debt, institutional desks unwound their positions. The exit of 72,000 BTC from CME over eight months equals more than $4.5 billion in notional value at current prices. CME open interest fell from 175,000 BTC at the start of 2026 to 120,000 BTC by April. In April 2026, average daily open interest fell below $8 billion and daily trading volume dropped under $3 billion. CME’s open interest fell for five consecutive months, dropping from 175,000 BTC in January 2026 to 103,000 BTC in August 2026.

Migration to offshore and onshore perpetuals

Market makers and quantitative trading firms moved toward offshore perpetual contracts on Binance, Bybit, and OKX. Binance holds 148,500 BTC in open interest, while CME holds 102,840 BTC. In the first quarter of 2026, Binance captured 40% of perpetual futures activity. Perpetual futures use a funding rate mechanism to stay tethered to spot prices and provide continuous liquidity without expiration dates. You already know that perpetuals account for roughly 90% of all crypto derivatives volume globally. Binance controls 33% of the centralized perpetual futures market. On May 29, 2026, CME launched 24/7 trading for crypto futures and options. The inaugural weekend saw more than 7,200 contracts traded, totaling $50 million in notional value. On the same day, the CFTC approved Kalshi’s BTCPERP, the first Bitcoin perpetual futures product on a regulated U.S. exchange. Kalshi generated more than $5.5 billion in cumulative perpetual futures volume within weeks of launch. CME filed a lawsuit against the CFTC, arguing the agency should classify perpetual futures as swaps. Will the federal lawsuit filed by CME against the CFTC change the availability of these products?

Volatility hedging and market structure

CME introduced Bitcoin volatility futures on June 1 to help traders hedge against price swings. These contracts settle to the CME CF Bitcoin Volatility Index, known as BVX. Traders use these to manage the risk of Bitcoin price movements. CME’s average daily volume across its crypto complex reached 407,200 contracts, a 46% increase year over year. This volume includes more than 168,000 contracts in Bitcoin futures and options in the first quarter. Binance provides high leverage, sometimes exceeding 100x, and allows for both physical and cash settlements. In contrast, CME futures require a maintenance margin of around 40%, which limits traders to 2.5x leverage.