The Block Crypto News10 minutes ago

Published on June 20, 2024 15:04 GMT+00:00edited on June 20, 2024 15:09 GMT+00:00

Institutional investors are using spot bitcoin exchange-traded funds (ETFs) and the CME bitcoin futures market for basis trades, causing a sharp increase in open interest. 

"Spot bitcoin ETFs have contributed to an 80% increase in open interest on the CME bitcoin futures market year-to-date," CF Benchmarks lead research analyst Gabriel Selby told The Block.

Selby added that this institutional investor activity could drive bitcoin liquidity and "set the stage for a more robust and interconnected market ecosystem." 

Record number of futures contracts on CME after spot ETF approval

CF Benchmarks data show there are currently just under 18,000 bitcoin short contracts on the CME (at a notional of around $6.3 billion). "This is way above the record prior to spot bitcoin ETF …