• Institutional investors are increasing their participation in the Bitcoin Futures markets

  • Financial institutions are re-entering the Bitcoin Futures markets and resuming trading activity, according to August data from the Chicago Mercantile Exchange.

    Open Interest on CME Bitcoin Futures, which reopened after the May crash and is on its way to $2 billion, is the best indicator.

    Analysts at the Norwegian firm Arcane Research, which prepared this analysis, also published interesting findings about how hedge funds increased their short exposures in particular.

    One of the main reasons, according to them, could be Grayscale, which offers a discount on its investment product Bitcoin Trust (GBTC). However, most funds anticipate that the GBTC discount will vanish soon, so they will likely try to lock in this position with futures.

    Morgan Stanley, which owns more than 6.5 million GBTC shares, and the Bill Millers fund, which owns 1.5 million GBTC shares, are among the most recent major investors in GBTC.

    Other types of traders, on the other hand, prefer long positions in the Bitcoin Futures market, where asset managers play a key role.

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