Bitcoin ETF optimism is growing as institutional investors are increasingly looking to buy bitcoin (BTC), with the world’s largest cryptocurrency surging to a 17-month high of $35,000. This surge occurred on Tuesday when the ticker for a BlackRock ETF appeared on the Depository Trust & Clearing Corp. (DTCC) website. With the approval of a Bitcoin ETF on the horizon, institutional interest and activity in the cryptocurrency market are on the rise.
Open Interest Drops Across Crypto Exchanges
In contrast to the growing institutional interest, open interest, which measures the value of all derivatives positions, has dropped across crypto exchanges. This indicates a decline in retail investor interest. However, open interest on the Chicago Mercantile Exchange (CME), a platform favored by institutions, has surpassed 100,000 bitcoin ($3.4 billion) for the first time.
CME’s Market Share Approaches Binance’s Perpetual Market
CME’s market share has now reached approximately 25%, approaching that of Binance’s perpetual market. Additionally, CME has captured an 80% market share for all traditional expiry futures. The daily trading volume for bitcoin futures on CME reached $1.8 billion in the past 24 hours, with 10,942 contracts, each worth 5 BTC, being exchanged during a volatile trading session.
Asia Experiences Significant Buying Pressure
Asia has also seen increased interest in bitcoin, particularly in Hong Kong. The CSOP Bitcoin Futures ETF experienced a record trading volume of $22.37 million and capital inflows of $17.64 million. This marks a substantial increase compared to the previous daily turnover, which ranged between $125,000 and $250,000.
Anticipation for Bitcoin ETF Approval Grows
Institutional investors are eagerly anticipating the approval of a Bitcoin ETF, which would lead to even greater interest and activity in the cryptocurrency market. The potential approval of a Bitcoin ETF is a significant development for the cryptocurrency industry, as it would provide a more accessible and regulated investment vehicle for institutional investors.
As the Bitcoin ETF approval process continues, it is essential to monitor developments in the market and the actions of institutional investors. The growing interest in bitcoin from these investors is a positive sign for the future of the cryptocurrency market and the potential for a Bitcoin ETF.
In conclusion, the growing optimism for the approval of a Bitcoin ETF has led to increased interest from institutional investors in bitcoin. This has resulted in a surge in the value of the cryptocurrency and increased trading activity on platforms such as CME. The anticipation for the approval of a Bitcoin ETF is a significant factor driving the current market trends, and it will be interesting to see how the market develops once a Bitcoin ETF is approved.
