Record Bitcoin Futures Open Interest on CME Indicates Positive Market Sentiment
CME bitcoin futures' open interest reached an unprecedented level, indicating strong interest from active market participants, according to K33 Research.
Bitcoin futures open interest on the Chicago Mercantile Exchange (CME) has reached a record high of 172,430 BTC (approximately $11.6 billion).
In the last five trading days, CME bitcoin futures experienced an increase of 25,125 BTC, marking one of the most significant changes in recent years.
Market Insights
- The latest milestone indicates strong active market participation, according to K33 Research.
- Active and direct market participants are the primary drivers behind this growth, rather than inflows from futures-based ETFs like the ProShares Bitcoin ETF (BITO).
“The growth is clearly driven by active/direct market participants - not inflows to futures-based ETFs.”
"El crecimiento es claramente impulsado por participantes del mercado activos/directos, no por flujos hacia ETFs basados en futuros.” - As of now, active and direct participants hold 85,623 BTC, a similar amount to what was held in March 2023, coinciding with bitcoin's all-time high.
- Meanwhile, one-time leveraged ETFs have seen a steady decline.
Historical Context
- The significant uptick occurred during a similar period after BlackRock's filing for the spot bitcoin ETF, where bitcoin prices surged from $25,000 to $30,000.
- Moving into October 2023, the CME observed an additional 25,115 BTC, becoming the largest futures exchange, which led to another rally in bitcoin prices from $25,000 to over $40,000.
In conclusion, rising open interest at CME signals a bullish sentiment in the market, driven largely by active participants, foreshadowing potential upward movements in the BTC market.
