Bitcoin
Bitcoin Open Interest Calendar Increases as Institutional Interest Grows via CME
Quick summary
The first half of 2024 witnessed significant developments in the digital asset market, especially for Bitcoin and Ethereum, as highlighted in a comprehensive report report compiled by Glassnode and CME. The report delves into insights and market evolution following the launch of the US Bitcoin ETFs on January 11 and the effect on derivatives markets.
In the cryptocurrency industry, two primary futures instruments are used: perpetual swaps and traditional calendar-expiration contracts. According to the report, perpetual open interest currently stands at approximately $16.6 billion, while calendar open interest stands at $12.6 billion. Historically, perpetual open interest has dominated until 2023. However, 2024 saw a notable increase in calendar-expiration futures, attributed to a surge in interest from institutional investors, with a large amount traded via CME Group Instruments.
BTC: Futures and Perpetual Open Interest Calendar: (Source: Glassnode)
The report shows that this shift is not reflected in Ethereum, where perpetual open interest remains the dominant choice, with $12.5 billion compared to $2.2 billion in calendar open interest. The next ETF Launch in July raises questions about whether this dynamic could change in the Ethereum market.
Supporting this trend, Bitcoin CME Futures demonstrated remarkable dominance, accounting for over a third of all open futures positions in Bitcoin. Furthermore, according to the report, CME’s trading volume continues to gain market share, currently at 6.5%, which is a multi-year high.
This report illustrates the growing influence of institutional investors in shaping the futures market, particularly through CME Group offerings, and signals potential shifts in market forces with future developments such as the launch of the Ethereum ETF.