Bitcoin futures open interest on the Chicago Mercantile Exchange (CME) has neared $5.2 billion, approaching its previous peak noted in late October 2021. Over the last month, the open interest in CME’s Bitcoin futures has surged from $3.63 billion to $5.20 billion, coinciding with Bitcoin’s current trading price of $43,651, marking a 26% increase.
This rise in open interest aligns with a significant price surge for Bitcoin observed between October 1 and 21, 2021, where its value soared from $45,000 to $66,000. The surge suggests renewed interest in Bitcoin, but it’s unclear how traders are positioned on the CME platform.
The recent spike in Bitcoin’s price is attributed by some to the speculation surrounding the potential approval of spot Bitcoin ETF products by the Securities and Exchange Commission (SEC). Meanwhile, others believe that Bitcoin’s surge is linked to macroeconomic factors, particularly the Federal Reserve’s hint at interest rate cuts.
CME’s dominance in Bitcoin futures open interest, surpassing Binance, reflects increasing institutional interest in cryptocurrency products. Although many analysts foresee rapid price escalation upon the spot ETF approval, some caution against a possible “sell the news” event in the days following the approval.
