The open interest of bitcoin futures on the Chicago Mercantile Exchange reaches an all-time high
The open interest of bitcoin futures on the Chicago Mercantile Exchange (CME) has reached a new record high, surpassing previous levels. According to The Block’s Data Dashboard, the open interest reached $5.4 billion, exceeding the previous high of $4.5 billion set in November 2021. This surge in open interest suggests increased participation by institutional traders, potentially in anticipation of spot bitcoin ETF approvals.
Increase in bitcoin futures held by asset managers
The open interest in bitcoin long futures held by asset managers on the CME has also reached an all-time high. The value has been steadily climbing since October 2023 and currently stands at $2.52 billion. This indicates that asset managers are expecting bitcoin’s price to appreciate before the expiration of their current contracts at the end of January.
High open interest from hedge funds going short
Hedge funds have also shown a significant level of open interest in going short on bitcoin futures on the CME. Currently, there is $2.7 billion of open interest from hedge funds going short, although it remains below the all-time high of $2.9 billion recorded in November 2021.
Net positions of asset managers and hedge funds
Overall, asset managers hold a net long position worth $2.5 billion, while hedge funds have a net short position worth $2.1 billion. This data further highlights the differing strategies and market outlooks between these two categories of traders.
Increase in large open interest holders
Data from The Block’s Data Dashboard also reveals an increase in large open interest holders for both long and short positions in CME bitcoin futures. This suggests heightened activity in the derivatives market by participants with substantial holdings, indicating a presence of more sophisticated and experienced investors.
Hot Take: Bitcoin futures open interest on CME reaches new heights
The open interest of bitcoin futures on the Chicago Mercantile Exchange has surged to an all-time high, surpassing previous records. This indicates growing participation from institutional traders and asset managers, who are positioning themselves for potential market developments such as spot bitcoin ETF approvals. On the other hand, hedge funds have also shown significant open interest in going short on bitcoin futures. These trends demonstrate a diverse range of strategies and outlooks among different types of traders in the crypto market.
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