🔥CME Bitcoin futures open interest hits 14-month low


April 11th, Chicago Mercantile Exchange (CME) Bitcoin futures open interest (OI) has fallen to $8.41 billion, the lowest level in 14 months. Glassnode analysts pointed out that this trend is mainly driven by basis trading unwinds, a strategy that previously built long positions through spot ETFs and hedged futures shorts to profit from the spread, but recently the annualized return has dropped from 15%-20% to around 5%, leading to profit-taking by institutions. Additionally, CME Bitcoin futures' daily trading volume has shrunk below $3 billion. Analysts believe that as institutional demand shifts towards direct spot holdings, leverage levels in the futures market are decreasing significantly.
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