Analyst Cites ETF Trades as Major Influence Behind 80% Rise in CME Bitcoin Futures Open Interest

CoinMarketCap06-20

Key Points Spot Bitcoin ETFs and CME Bitcoin futures are being used for basis trades, leading to a significant increase in open interest. This activity can influence Bitcoin liquidity and foster a ...

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This activity can influence Bitcoin liquidity and fos","collect":0,"end_time":0,"defaultTopTitle":"coinmarketcap.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1732799900.SGD":"JPMorgan Investment Funds - Global Income A (irc) SGD-H","LU1599440770.SGD":"FIDELITY GLOBAL DIVIDEND \"A\" (SGDHDG) INC","BK4585":"ETF&股票定投概念","BK4594":"比特币ETF概念","BITO":"ProShares Bitcoin Strategy ETF ","LU0912757837.SGD":"JPMorgan Investment Funds - Global Income A (mth) SGD-H","BK4566":"资本集团","LU2023251221.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"AM\" (USD) INC","DEFI":"Hashdex Bitcoin ETF","LU1732800096.USD":"摩根大通环球收益基金A (irc)","GBTC":"Grayscale Bitcoin Trust","FBTC":"Fidelity Wise Origin Bitcoin Fund","LU2089284900.SGD":"Allianz Global Sustainability Cl AM Dis H2-SGD","BK4588":"碎股","BTCO":"Invesco Galaxy Bitcoin ETF","BTCW":"WisdomTree Bitcoin Fund","HODL":"VanEck Bitcoin Trust ETF","LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD","BRRR":"Valkyrie Bitcoin Fund","BK4561":"索罗斯持仓","LU2347655156.SGD":"JPMorgan Investment Funds - Global Income A (icdiv) SGD-H","LU0795875086.SGD":"JPMorgan Investment Funds - Global Income A (div) SGD","IBIT":"iShares Bitcoin Trust","LU0158827948.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"A\" (USD) INC","BK4112":"金融交易所和数据","FDN":"First Trust Dow Jones Internet I","LU2089283258.USD":"安联环球可持续基金Cl AM Dis","LU1718418525.SGD":"JPMorgan Investment Funds - Global Select Equity A (acc) SGD","LU0795875169.SGD":"JPMorgan Investment Funds - Global Income A (div) SGD-H","BITB":"Bitwise Bitcoin ETF","LU2133065610.SGD":"JPMorgan Investment Funds - Global Dividend A (mth) SGD","CME":"芝加哥商品交易所","LU0731783394.SGD":"Fidelity Global Dividend A-MINCOME(G)-SGD","EZBC":"Franklin Bitcoin ETF"},"translate_title":"分析师称ETF交易是芝商所比特币期货持仓量增长80%的主要影响因素","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FDN":1,"CME":1,"BITO":0.75,"IBIT":0.75,"HODL":0.75,"GBTC":0.75,"FBTC":0.75,"EZBC":0.75,"DEFI":0.75,"BTCW":0.75,"BRRR":0.75,"BTCO":0.75,"BITB":0.75},"content_text":"Key Points\n\nSpot Bitcoin ETFs and CME Bitcoin futures are being used for basis trades, leading to a significant increase in open interest.\nThis activity can influence Bitcoin liquidity and foster a more interconnected market ecosystem.\n\nInstitutional investors are significantly using spot Bitcoin exchange-traded funds (ETFs) and the CME Bitcoin futures market for basis trades. This activity has led to a sharp uptick in open interest.\nBitcoin ETFs Influence on CME Bitcoin Futures Market\nAccording to Gabriel Selby, a lead research analyst, spot Bitcoin ETFs have contributed to an 80% rise in open interest on the CME Bitcoin futures market since the beginning of the year. Selby suggests that this institutional investor activity could enhance Bitcoin liquidity and lay the groundwork for a stronger, more interconnected market ecosystem.\nData reveals that there are currently just under 18,000 Bitcoin short contracts on the CME, equating to a notional value of approximately $6.3 billion. This figure significantly surpasses the previous record of roughly 6,200 short contracts prior to the approval of the spot Bitcoin ETF in October 2021. The increase is primarily attributed to basis trading, which leverages the alignment of price benchmarks between spot Bitcoin ETFs and CME futures contracts to create arbitrage opportunities.\nThe Impact of Basis Trading on Bitcoin Price\nArbitrage opportunities that arise from trading the difference between the spot and futures prices can exert pressure on the current Bitcoin spot price. When the Bitcoin futures price is above the spot price, purchasing in the spot market raises the spot price, while selling in the futures market reduces the futures price.\nOn the other hand, when the futures price is below the spot price, selling in the spot market decreases the spot price, while buying in the futures market boosts the futures price. Nonetheless, the influence of arbitrage activities on the spot price is typically short-term, as the spot and futures prices will converge over time.\nThe analyst stated that it’s difficult to pinpoint exactly how much spot Bitcoin ETF is being utilized in aggregate for the basis trade. “It will be within the ballpark of the $6 billion notional on the CME side,” the analyst noted.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2445249931"}