In a major development, the open interest in bitcoin perpetual futures on the Deribit derivatives exchange has recently reached an annual peak, soaring to an impressive $740 million. This level has not been witnessed since November 2021, when Bitcoin achieved its all-time high, surpassing $68,000. Simultaneously, the Chicago Mercantile Exchange [CME] has set a new record with an all-time high for bitcoin long open interest, standing at a substantial $2.2 billion.
The surge in open interest is a crucial metric that suggests an influx of fresh capital into the market. This phenomenon signifies expanding market participation and hints at potential liquidity growth. Additionally, the heightened interest in bitcoin perpetual futures on Deribit reflects a renewed enthusiasm reminiscent of the bullish market conditions observed during the peak of the cryptocurrency in November 2021.
Justin d’Anethan, Head of Business Development for the Asia-Pacific region at Keyrock, weighed in on this trend, highlighting the noteworthy premium on CME BTC futures contracts. According to d’Anethan, this premium serves as an additional indicator of increased institutional involvement in the market. The healthy futures premium observed on CME contracts, as pointed out by d’Anethan, suggests the presence of sophisticated and sizeable players seeking exposure to BTC.
Bitcoin Institutional Surge
Further substantiating this perspective is data from The Block’s Data Dashboard, which reveals an unprecedented level of CME bitcoin long-term open interest held by asset managers. According to The Block’s data, asset managers currently hold nearly $2.2 billion in BTC long-term open interest, underscoring the notable role of institutional players in the ongoing market dynamics.
As the open interest in bitcoin futures continues to reach new heights, market analysts are closely monitoring these developments for insights into the evolving landscape of cryptocurrency trading. The current trend indicates growing confidence among institutional investors, as evidenced by their increased participation in BTC-related financial instruments on both Deribit and CME.