Bitcoin Futures: Record Open Interest in CME Ahead of ETF Debut

In response to Gary Gensler SECs chairs Friday announcement the dollar value of the open interest of the Chicago Mercantile Exchange CME Group experienced a significant boost.
In response to Gary Gensler SECs chairs Friday announcement the dollar value of the open interest of the Chicago Mercantile Exchange CME Group experienced a significant boost.

In response to Gary Gensler, SEC’s chair’s Friday announcement, the dollar value of the open interest of the Chicago Mercantile Exchange (CME) Group experienced a significant boost.

According to insights obtained from Bybt, the dollar value of open interest (OI) was $3.64 billion by the end of Friday. Compared to the earlier in the month, it is obvious the price doubled. The last time the market saw anything remotely close was during the February market frenzy when the price was $3.26 billion.

Now, activities on the Chicago-based exchange have spiked. This is amid public expectations that different futures-based ETFs could begin trading in the US. Moreover, there’s also widespread anticipation that state-side institutional participation will significantly improve as soon as futures ETFs go public.

Institutional Investors Responsible for Rally

As Coinrise previously reported, institutional investors have been piling into the market in anticipation of the ETF rollup. Now, financial analysts suggest institutional investors were most responsible for the CME rally.

It looks evident that the SEC’s tacit approval of ProShares Bitcoin futures ETF–Invesco, Valkyrie, others to follow–continues to boost investors’ confidence.

Martha Reyes, head of research at digital asset prime brokerage and exchange, Bequant, shared her opinions on the price rally. According to her, activity on the CME is evidence that US institutions are most responsible for the boost.

Additionally, Martha feels that the speculations about futures ETF resulted from the SEC’s unusual quietness on ETFs. She further highlighted that retailed-led exchanges instead improved on the CME, adding to her assertion on institutional participation.

BTC futures OI has reached highs not seen since May, highlighting growing expectations of the listing in the US of BTC futures ETF,” says Noelle Acheson, a market expert with Genesis Global Trading. The only difference between then and now, she explained, “is the higher weighting (17% vs. 11%) of cash-margined futures, implying lower leverage overall  in the market.”

Also, stats from Glassnode suggest the total amount of outstanding contracts on the CME rose by 60% to 56,410. Moreover, the premium and spot value on the CME also increased from a yearly 1% to over 16% in October. And while all these are happening, Bitcoin continues to gallop towards surpassing all its previous records.

Total futures open interest (OI) globally also rose to more than $23 billion – its highest in five months.