Delve into the meteoric rise of Bitcoin to $35,000, decoding data from CME and Hong Kong’s CSOP Bitcoin Futures ETF, spotlighting institutional influence.
A further examination of data from sources like the CME and Hong Kong’s CSOP Bitcoin Futures ETF indicates that institutional investors are behind this extraordinary spike in price of bitcoin, which has skyrocketed to $35,000.
This article delves into the technical intricacies of this phenomena and illuminates the ways in which institutions are vying for dominance in the bitcoin space.
The price of Bitcoin is determined by institutional investors: an analysis of data from Hong Kong’s CSOP and CME’s Bitcoin Futures ETF
Bitcoin (BTC) has been rising rapidly lately, hitting a 17-month high of $35,000.
Both the traditional financial institutions and the cryptocurrency community have taken notice of this remarkable rally.
Specifically, information from platforms like the Chicago Mercantile Exchange (CME) and the Hong Kong CSOP Bitcoin Futures ETF offers compelling proof that institutional investors have been the main force behind this increase.
Recently, open interest in the CME’s Bitcoin product achieved a noteworthy benchmark of 100,000 BTC, or an astounding $3.4 billion. This significant event shows how institutional investors’ interest in digital assets is expanding.
Open interest in CME surges
These investors’ preferred venue has proved to be the CME, and its open interest figures support this.
The increase in public interest is not a singular occurrence. It came at the same time that there was fresh hope for the approval of an exchange-traded fund (ETF) based on spot bitcoin.
Institutional investors felt compelled by this development to protect their bitcoin holdings in expectation of future growth and financial products.
The ticker of a BlackRock ETF connected to bitcoin was shown on the Depository Trust & Clearing Corp. (DTCC) website on the day that the cryptocurrency broke through the $31,800 barrier level.
The price of Bitcoin immediately skyrocketed as a result of this discovery. The cryptocurrency’s rising trend was further accelerated when the BlackRock ETF ticker appeared, which raised institutional interest in the asset.
Examining open interest on various platforms is crucial to comprehending the processes at work. The data from Coinalyze highlights a significant difference between institutional and retail investors.
Institutional interest has reached all-time highs, but retail interest has decreased, as shown by dropping open interest on the different cryptocurrency exchanges.
Institutional investors in the bitcoin market now rely heavily on the CME.
With more than 100,000 bitcoins available for purchase, the CME’s market share has increased to approximately 25%, making it competitive with Binance’s perpetual market.
The CME’s controlled environment and institutional investors’ trust in it have led to this market domination.
Apart from bitcoin futures, the CME did exceptionally well in conventional perpetual futures, taking an astounding 80% of the market.
This outcome highlights the legitimacy and confidence that organisations have in the CME as a dependable trading venue.
CSOP Bitcoin Futures ETF for Hong Kong
It is not just the CME that is seeing an increase in institutional interest. The CSOP Bitcoin Futures ETF in Hong Kong has experienced noteworthy expansion as well. With $17.64 million in inflows of money, it managed to reach an astounding trading volume of $22.37 million in a single trading session.
This record performance indicates the strong purchasing demand from institutional investors, both in terms of volume and inflows. Compared to daily turnovers of between $125,000 and $250,000 in the past, this is a notable change.
In the end
The price of bitcoin has soared near $35,000 recently, and it is highly likely that institutional investors are actively looking to purchase this digital currency.
Information from sources like the CME and the CSOP Bitcoin Futures ETF in Hong Kong speaks loudly about this institutional craze.
Institutions are putting themselves in a strategic position and the CME is becoming a hub for their activity as hope for a spot ETF on bitcoin keeps growing.
The data offers strong proof of the trend that is evidently driving the current market dynamics: institutional interest in bitcoin.
