This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Bitcoin futures open interest on the Chicago Mercantile Exchange (CME) has reached $5.2 billion, just $200 million away from its all-time high in late October 2021. Over the past 30 days, open interest in CME’s Bitcoin futures has grown from $3.63 billion to $5.20 billion, coinciding with a 26% gain in Bitcoin’s price. This surge in open interest indicates a renewed interest in Bitcoin, but it does not reveal the positioning of CME traders. According to a report to the Commodities Futures Trading Commission, the “big players” on CME’s platform were net short at the time. The market’s current short position suggests that a snapback is not a concern at this point. The recent rally in Bitcoin’s price is not solely driven by speculation around the potential approval of spot ETF products by the SEC. Analysts believe that the rally is also influenced by the macro environment, particularly the Federal Reserve’s signal to begin cutting interest rates. In November, CME surpassed Binance to become the top platform for Bitcoin futures open interest, indicating increased interest from traditional finance institutions. While many expect a spot ETF approval to result in a rapid price increase for Bitcoin, some are skeptical and predict a “sell the news” event following the approval.