Open Bets On CME's Bitcoin Futures Hit Record High

CME Bitcoin Futures have hit a record high in open interest at 5,190, up seven percent on the week prior, data from the CFTC shows.

AccessTimeIconJun 3, 2019 at 2:30 p.m. UTC
Updated Sep 13, 2021 at 9:16 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The open interest in CME Bitcoin Futures contract hit a record high last Friday.

The total figure of 5,190 for the period between May 27 to June 3 represents the largest number of open interest, or contracts outstanding, in CME bitcoin futures ever and a 7 percent gain on the week prior, according to data from the Commodity Futures Trading Commission.

May 31 marked the last day of trading on the CME futures markets before contract settlements, which are set to take place at the end of today's (June 3) trading session.

The sharp rise in the futures trading activity could be a sign of increased institutional participation in the cryptocurrency markets. It is worth noting that futures were listed on the CME at the height of the bull market in December 2017. The futures trading activity, however, remained dull throughout 2018, courtesy of the bear market.

CME Futures Market - Daily Snapshot

cme-4

As seen previously, bitcoin futures usually “fill” a gap created by the close of the trading period at the end of the week with a resumption of trade on the following Monday. Large demand in futures contracts usually creates bigger gaps (from the time of close to a new open for the week), thereby risking greater draw down once prices correct.

The gaps shown on the CME bitcoin futures daily chart for May 17 and May 31 provide a good example of this.

On May 17 the spot price of bitcoin dropped to as low as $6,600 before greater buying pressure pushed prices back above $7,300, completing the 11.74 percent gap left in the futures market four days prior.

Again on May 31, after climbing to as high as $9,090 on the Coinbase exchange, BTC’s price retraced 11 percent below $8,000 before resuming its bullish trend, pushing back above $8,200 an hour later and completing the 5.5 percent gap left in the futures market, again, four days prior.

Lastly, the latest $145 gap left from yesterday's close and today's open created the possibility for a correction to roughly $8,595, which came in to effect early this morning as bitcoin's price fell below $8,400 on most exchanges.

Data from the CFTC also showed open interest in short positions sat at 85.1 percent compared to 62.9 percent for bitcoin longs, hinting at a price pullback in the short-term as investors side with the possibility for a downward move in its price.

Disclosure: The author holds no cryptocurrency at the time of writing

via Shutterstock; charts via Trading View

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.