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What are the key factors influencing the demand for CME's ESH3 futures in the digital asset industry?

avatarMurshid AnsariDec 15, 2021 · 3 years ago1 answers

What are the main factors that contribute to the demand for CME's ESH3 futures in the digital asset industry? How does the digital asset industry affect the demand for these futures contracts?

What are the key factors influencing the demand for CME's ESH3 futures in the digital asset industry?

1 answers

  • avatarDec 15, 2021 · 3 years ago
    In the digital asset industry, the demand for CME's ESH3 futures is influenced by various factors. One important factor is the reputation and trust associated with CME as a leading exchange. Traders and investors often prefer to trade on established and regulated exchanges like CME, which increases the demand for their futures contracts. Another factor is the correlation between digital assets and traditional markets. As the digital asset industry becomes more integrated with traditional financial markets, the demand for futures contracts that track digital assets, such as CME's ESH3 futures, increases. Additionally, the availability of liquidity and competitive trading fees also impact the demand for these futures contracts. Traders are more likely to engage in futures trading if there is sufficient liquidity and if the fees are competitive compared to other exchanges. Overall, the demand for CME's ESH3 futures in the digital asset industry is influenced by factors such as reputation, correlation with traditional markets, liquidity, and trading fees.