The anticipation of the United States Securities and Exchange Commission’s (SEC) decision on the country’s first spot Bitcoin ETF has coincided with a notable increase in institutional interest in Bitcoin (BTC). This surge in interest is confirmed by data from both spot and futures markets, with expectations leaning towards at least one spot ETF approval by the SEC.
The rise in the general crypto market, initiated by the spot Bitcoin ETF, has captured investors’ attention. Data provider CoinGlass reported that the open interest in Chicago Mercantile Exchange (CME) Bitcoin futures reached a historic high of $6.21 billion.
Previously, CME’s Bitcoin futures open interest saw a significant rise during the October-November 2023 period, climbing to $5.45 billion. The current figures surpass this previous peak, indicating an extreme increase. CoinGlass highlighted this with a note suggesting insiders might know something the public doesn’t.
Bitcoin open interest represents the total number of outstanding Bitcoin futures or options contracts in the market at any given time. This metric serves as a measure of the amount of money invested in Bitcoin derivatives.
Futures and options contracts allow investors to speculate on Bitcoin price movements without owning the underlying asset. Open interest increases as investors enter into futures or options contracts and decreases as contracts are settled or expire. The level of open interest can provide insights into market sentiment towards cryptocurrencies.