Institutional investors are eager to buy Bitcoin (BTC) amid renewed optimism that a spot exchange-traded fund (ETF) will be approved.
The world’s largest cryptocurrency rose to a 17-month high of $35,000 on Tuesday after the ticker for a BlackRock ETF appeared on the Depository Trust & Clearing Corp. website. (DTCC) showed up.
The breakout above the $31,800 resistance level coincided with a decline in open interest, a metric that evaluates the notional value of all derivatives positions on all crypto exchanges, according to Coinalyze data. The decline, reflecting interest from retail investors, contrasts with open interest in the Chicago Mercantile Exchange (CME), a venue favored by institutions, which surpassed 100,000 Bitcoin ($3.4 billion) for the first time.
According to Vetle Lunde, a senior analyst at K33Research, CME’s market share has increased to about 25%, approaching that of Binance’s all-time market. CME has also captured 80% market share for all traditional expiry futures.
There was also strong buying pressure in Asia, with the Hong Kong CSOP Bitcoin Futures ETF trading volume reaching $22.37 million on inflows of $17.64 million, a record for both volume and inflows. Daily sales so far have been between $125,000 and $250,000.