A Clear Bullish Sign? Open Interest of BTC Future Hit All-Time High
Henry Chan Jun 22, 2019 01:00
The Chicago Mercantile Exchange (CME) Group revealed the surging open interest of Bitcoin futures (BTC) by a record of 643 contracts in a single day and it also hit all-time high of 5,311 contracts on 17 June.
The Chicago Mercantile Exchange (CME) Group revealed the surging open interest of Bitcoin futures (BTC) by a record of 643 contracts in a single day and it also hit all-time high of 5,311 contracts on 17 June.
Image credit: CME Group
The 5,311 contracts totalling 26,555 equivalent BTC on 17 June worth approximately USD250 million, which CME suggested that there is a growing sign of institutional interest. Cboe Global Markets was the first U.S. exchange to list Bitcoin futures, followed by CME group. However, BTC future gained wider acceptance for CME as the number of open interests for CME is 6 times more than Cboe in March 2019.
JPMorgan reported that there is an underestimation of Bitcoin future and a growing influence from institutional investors. JPMorgan said “The overstatement of trading volumes by cryptocurrency exchanges, and by implication the understatement of the importance of listed futures, suggests that market structure has likely changed considerably since the previous spike in Bitcoin prices in end-2017 with a greater influence from institutional investors.”
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