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.
Bitcoin Bull
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.
