Bitcoin Open Interest on CME Surges

Aside from the fact that the recently launched Bitcoin futures exchange-traded funds give more exposure to institutional investors, it has also caused a surge to a record high in the Open Interest (IO) on the Chicago Mercantile Exchange.

Data from analytic providers have corroborated this with figures. The data provided by Glassnode shows a surge to an all-time high of $5.44 billion in the Open Interest on the Chicago Mercantile Exchange. 

Only in October, the IO has skyrocketed by nearly $4 billion, representing a 265 percent growth from the September record. According to Glassnode, the record is partly driven by the $BITO EFT product.

Another analytic platform, Skew, also presented its data regarding this. However, there is a slight upward difference on its own as it reported $5.6 billion as the October record for CME IO.

Open Interest (IO) is a metric for measuring the total number of outstanding derivative contracts, futures in this case, that have not been settled. A surge in this metric indicates a bull trend. This means that there are several market participants, and the bulk of the money is going to the underlying asset.

It is worth noting that ProShares, whose Bitcoin future exchange-traded fund ($BITO) launched nearly a week ago, has filed for exemption from CME position limits, Eric Balchunas, Bloomberg senior EFF analyst disclosed.

In his words, “ProShares is filing to be exempt from CME position limits AND they can use swaps if need-be. Both would obv be huge help to maintain exposure if $BITO keeps getting bigger.”

$BITO broke a record on the very first two days of its trading, recording $1 billion in volume and hitting $1 billion in assets under management. It overtook gold-based fund $GLD, which hit the 1 billion dollar record 17 years ago.

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