Arguably, the bullish trends regarding the price of Bitcoin somewhat influence the activeness of institutional investors in the market. According to Skew, the open interest in Bitcoin futures on CME surged to the second largest in the entire market. Chicago Mercantile Exchange – or CME – is an institutional-grade derivative trading platform.
This comes as the price of the underpinned asset, Bitcoin, surged past the $13,000 price level. However, the Bitcoin price has dropped to $12,927 on Coinmarketcap at the time of writing.
Institutions Take Over in Bitcoin Futures
As Nick Cote, a long-term Bitcoin trader shared on Friday, CME’s open interest surpassed popular major retail derivatives platforms like Binance. Currently, the institutional platform is only second to the Malta-based OKEx exchange for open interest in Bitcoin futures. In accordance with the words of the Bitcoin traders, the institutional investors are seemingly taking over the crypto market.
Institutional take over of crypto going as planned.
Remember when it was crypto vs institutions.
Those sure were the days. https://t.co/2IEuCstGmn
— Nick Cote (@mBTCPiz) October 23, 2020
Judging by the data from Skew, the entire open interest in Bitcoin futures adds up to $5 billion. This accounts for the OKEx, CME, Binance, BitMEX, Bybit, Huobi, FTX, Deribit, Bitfinex, Kraken, Bakkt, and CoinFlex number combined.
OKEx exchange holds the largest open interest in Bitcoin futures. As of today, the exchange’s open interest value in US dollars nears one billion (currently at $0.98 billion).
Institutional-grade platform CME gained more trades as the total Bitcoin futures open interest is worth over $780 million. The third-largest platform is Binance, which notes an open interest of over $740 million. BitMEX notes figures of over $620 million. The drop in the exchange’s open interest follows the recent US charges that led to massive Bitcoin withdrawal from the exchange.
However, the Binance exchange sees the largest 24-hour futures volumes at $2.78 billion. Huobi exchange sees the second-largest 24hrs volume at $1.93 billion, followed by OKEx at $1.83 billion. The institutional platform, CME, sees as low as $0.20 billion, according to Skew.
Grayscale Investment Assets Continues to Pump
Another institutional investment platform, Grayscale Investments, noted a $300 million increase in its assets under management (AUM) within 24hrs. As of October 21, Grayscale’s net asset valuation was $7.0 billion, which spiked to $7.3 million the next day. The company’s AUM is currently dominated by its Bitcoin Trust, which is worth over $6 billion, following the October 22 data.
10/22/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@Grayscale) October 22, 2020