Terrence A. Duffy, president and CEO of leading derivatives marketplace Chicago Mercantile Exchange (CME), revealed that his firm has seen an increase in demand for crypto products since last November.
In a recent interview with CNBC’s Closed Bell, Duffy revealed as much when asked about the state of institutional demand for his bitcoin futures product.
CME Crypto Products Hit All-Time Highs
The CME CEO believes that market conditions in 2022 may have affected organizations’ demand for its products.
With the collapse of the Terra ecosystem in May, FTX’s bankruptcy in November, and a series of contagion-related bankruptcies that followed, many critics believe the group’s interest in crypto assets will plummet.
However, Duffy revealed that the opposite is the case, as demand for CME’s cryptocurrency derivatives has surged since November.
“It was interesting to see what happened to Bitcoin after we saw what happened late last year and some of the ongoing issues in the industry. There has been an increase around the month and that continues,” the chief executive said.
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Duffy believes clients’ trust in CME also helps drive sales. Due to the lack of regulatory clarity in the crypto industry and its entities, clients may opt for regulated markets such as CME.
“I think people are looking at regulated markets, especially institutional markets. You know, if we trade, we want to trade on regulated exchanges like CME. So we do see growth in our crypto offerings, so We’re very happy about that,” he added.
2022 is the best year in CME history
Meanwhile, despite the harsh crypto winter, CME revealed during its fourth-quarter 2022 earnings call on Feb. 8 that 2022 will be the best year in the company’s history as it has achieved significant growth.
The company’s financial products contributed to the growth, with revenue rising 5.27% from 2021 to $1.21 billion and earnings per share hitting a record $1.92.
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According to CryptoPotato