The digital assets market, especially Bitcoin and Ethereum, has seen significant developments in the first half of 2024. A report by Glassnode and CME highlights the impact of the US Bitcoin ETFs launched on Jan. 11 on the derivatives markets.
In the crypto industry, two main futures instruments are used: perpetual swaps and traditional calendar-expiring contracts. The report shows that while perpetual open interest is currently around $16.6 billion, calendar open interest has surged to $12.6 billion in 2024, indicating a shift from previous years where perpetual open interest dominated. This increase in calendar expiring futures is attributed to growing interest from institutional investors, with many trades happening on CME Group Instruments.
However, the situation is different for Ethereum, where perpetual open interest remains the preferred choice at $12.5 billion compared to $2.2 billion in calendar open interest. The upcoming Ethereum ETF launch in July may change this dynamic in the market.
Bitcoin CME Futures have shown significant dominance, representing more than one-third of all open futures contracts positions in Bitcoin. The report also notes that CME’s trade volume has reached 6.5%, a multi-year high, indicating the platform’s growing market share.
Overall, the report highlights the increasing influence of institutional investors in shaping the futures market, particularly through CME Group’s offerings. It also suggests potential shifts in market forces with upcoming developments like the Ethereum ETF launch.
In conclusion, the rise in calendar open interest in Bitcoin and the dominance of Bitcoin CME Futures point to a growing interest from institutional investors in the digital assets market. As the market continues to evolve, it will be interesting to see how these trends impact the overall landscape of cryptocurrency trading.