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Bitcoin Futures Attract Biggest Bets Since Terra's Collapse

Bitcoin Futures Attract Biggest Bets Since Terra's Collapse

CoindeskCoindesk2023/06/26 15:41
By:Shaurya Malwa

Open interest has surged to $11 billion to its highest level in over a year.

Bitcoin (BTC) futures markets are seeing the largest money flows in over a year as traders likely bet on price movements amid a flurry of crypto exchange-traded fund (ETF) filings.

Open interest, or the total number of unsettled contracts, on bitcoin futures increased to over $11 billion over the weekend to their highest level since May last year, when the then-behemoth Terra imploded.

CoinDesk - Unknown

Rising open interest either means that new money is flowing into the market or existing participants are increasing their allocation. The metric can be used as an indicator to determine market sentiment and the strength behind price trends.

As such, open interest has largely hovered at the $8 billion level since late April, shows.

The rise in bitcoin futures trading comes parallel to a and buying activity on bitcoin options markets, used mainly by sophisticated investors to hedge against price swings or take levered bets on bitcoin movements.

Some market observers say the trend is likely to continue should ETF applications from traditional finance giants such as BlackRock be approved in the coming months.

“Bitcoin’s rally is part of a larger trend signaling a shift towards bitcoin as a distinctly strong and established store of value,” shared Alex Adelman, CEO of bitcoin rewards app Lolli, in an email last week.

“The recent burst of bitcoin ETF applications from leading institutions like BlackRock, Fidelity, and Invesco shows that new regulatory guidelines are the greenlight institutions have been waiting for to launch bitcoin-based products and meet client demand,” Adelman added.

Oliver Knight and Omkar Godbole contributed to the reporting.

Edited by Parikshit Mishra.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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