In a significant development, the Chicago Mercantile Exchange (CME) Bitcoin futures have surpassed Binance’s BTC futures in size, indicating a marked increase in institutional interest. As of now, CME’s Bitcoin futures open interest stands at an impressive $4.35 billion, the highest since Bitcoin’s peak in November 2021. This surge is largely attributed to the anticipation of a spot Bitcoin exchange-traded fund (ETF) approval, with a notable 125% increase in open interest from mid-October’s $1.93 billion .
The soaring annualized premium of CME Bitcoin futures, which spiked from 15% to 34% on November 28, underscores this optimism. Although it stabilized at 23% by the end of the day, this significant increase reflects a willingness among buyers to pay a premium for leveraged long positions. Interestingly, the 30-day BTC options 25% delta skew has remained below the -7% threshold, currently near -10%, suggesting a bullish sentiment among institutional investors .
Despite these optimistic indicators, it’s important to consider alternatives for institutional investors seeking to avoid the high costs of futures contracts, such as CME Bitcoin options or regulated ETFs and exchange-traded notes (ETNs) in regions like Canada, Brazil, and Europe . With Bitcoin’s price hovering around $38,000, the market remains poised for challenges to resistance levels, driven by the continuing hope for a spot ETF approval .
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.