CME Group CEO and Chairman Terry Duffy is still bullish on crypto despite last year’s market crisis that saw high-profile firms such as FTX exchange struggling with liquidity and filing for bankruptcy.
An Uptick in Crypto Products Despite Bear Market
In a February 8 interview with CNBC, Duffy said that despite the negative events of 2022, the leading financial derivatives exchange saw an “uptick” in its crypto products.
“It’s really been interesting what has been going on with Bitcoin after we saw what happened at the end of the year with some of the issues going on in the industry. The whole crypto industry suffered and then we saw an uptick in our open interest in November-December, and it’s continuing on here,” he added.
Duffy also stated that investors are starting to show more interest in regulated markets, especially institutions. He noted that, for instance, if investors are going to trade in crypto, they would prefer doing that on a regulated exchange like CME.
Duffy Comments on Fed’s Hawkish Stance
During the interview, Duffy commented on the continued Federal Reserve’s hawkish stance and how the company is bracing for future rate hikes. The CME chairman believes the hikes are good business and that it is hard to predict what will happen soon.
“When you look at where the market is pointing to, you’re looking at the next Fed meeting. You’ve got a 90% probability that there’s going to be another quarter percent hike and then you have the meeting after that in May with a 70% chance of a quarter hike. The Fed Fund Futures is pricing in potentially by year-end maybe a pivot on the downside,” he said.
Since last year, the Fed has raised the federal funds rate eight times as part of its ongoing effort to fight inflation. Although the hikes have begun to ease, the Fed has stated that inflation is not yet tamed.
Meanwhile, Duffy’s latest comments come as CME released its 2022 fourth-quarter financial report with $668 million in operating income and $638 million in net income.
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