- CME Bitcoin options open interest reaches an all-time high of $172 million.
- CME Bitcoin options open interest is up 1200% since the beginning of May.
CME Bitcoin options open-interest has reached an all-time high this week. Open interest on the platform is up 1200% since May, signifying an exponential increase in interest.
Open interest is calculated by the total number of contracts held at the end of the trading day. As a result, open interest can serve as a better indicator of market interest than options trading volume.
For example, if trader A opens 10 Bitcoin futures contracts for $500,000, the open interest will rise to $500,000. However, if trader A decides to close the position, open interest will decline back to $0. While this would result in $1,000,000 of Bitcoin futures volume, open interest would be $0. Unlike, trading volume, open interest helps quantify interest in the asset, rather than just trading activity.
Each CME contract is 5 Bitcoin, and thus targeted towards institutional investors. Thus, the rise in open interest may signify the growing institutional sentiment. The institutional sentiment has been growing as institutional money pours into the cryptocurrency space.
CME Bitcoin Futures
CME Group Inc. is one of the largest derivatives marketplaces. CME’s Bitcoin futures launched back in 2017, at the height of the bull-run.
CME Bitcoin options trading volume has been rising steadily in May. According to Skew, $32 million in Bitcoin futures were traded on the platform yesterday.
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