CME bitcoin futures open interest hits lowest level in 14 months
BlockBeats reported on April 11 that open interest (OI) in Chicago Mercantile Exchange (CME) Bitcoin futures has dropped to $8.41 billion, marking the lowest level in 14 months. According to Glassnode analysts, this trend is mainly driven by the unwinding of basis trades. Previously, this strategy established long positions through spot ETFs and hedged with short futures to earn the spread, but the annualized yield has recently declined from 15%-20% to around 5%, leading institutions to take profits.
In addition, the daily trading volume of CME Bitcoin futures has decreased to below $3 billion. Analysts believe that as institutional demand shifts towards directly holding spot assets, leverage in the futures market is decreasing significantly. (The Block) https://www.theblock.co/post/396722/cme-bitcoin-futures-activity-slumps-to-14-month-low-as-basis-trade-unwind-drains-institutional-demand
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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