The Open Interest in Bitcoin Long Futures Reaches All-Time High
The open interest in bitcoin long futures held by asset managers on the Chicago Mercantile Exchange (CME) has reached a record high. According to The Block’s Data Dashboard, the open interest of CME bitcoin long futures by asset managers has increased from $1.04 billion at the end of October to $1.98 billion currently.
Asset Managers Anticipate Bitcoin Price Appreciation
The surge in open futures contracts suggests that asset managers are expecting bitcoin’s price to appreciate by the expiration date of the current contracts, which is the last Friday of December.
Hedge Funds Show High Open Interest
Hedge funds also have a significant amount of open interest in bitcoin futures on the CME. Currently, there is $680 million of open interest from hedge funds going long, although this remains below the all-time high of $960 million. However, hedge funds are responsible for over $2 billion of open interest in short positions for bitcoin futures on the CME.
Net Positions for Asset Managers and Hedge Funds
Overall, asset managers have a net long position worth $1.97 billion, while hedge funds have a net short position worth $1.36 billion, according to The Block’s Data Dashboard.
CME Bitcoin Futures Overtake Binance’s Futures Market
On November 10, CME bitcoin futures surpassed Binance’s futures market in terms of size, indicating increased demand from institutional investors. Coinglass data shows that the total open interest on the CME for bitcoin futures is now $4.15 billion compared to $4.08 billion on Binance’s futures market.
All-Time High for Large Open Interest Holders
Data from The Block’s Data Dashboard also reveals an all-time high for large open interest holders of CME bitcoin futures, both in long and short positions. This suggests increased activity in the derivatives market by participants with substantial holdings, indicating involvement from experienced investors.
Hot Take: Bitcoin Long Futures Open Interest Hits New High, Indicating Bullish Sentiment
The open interest in bitcoin long futures on the Chicago Mercantile Exchange (CME) has reached its highest level ever. Asset managers and hedge funds are showing significant interest in bitcoin futures, with asset managers holding a net long position and hedge funds dominating the short positions. The growing open interest suggests that investors are anticipating further price appreciation for bitcoin. In addition, the dominance of institutional investors is evident as CME’s bitcoin futures market surpasses Binance’s in terms of size. This indicates a bullish sentiment among more experienced and sophisticated traders participating in the derivatives market.
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