Institutions Making Large Bitcoin Purchases and Driving the Price Up as CME Futures Premium Surges to April Level

2021-10-7 15:48

Bitcoin is comfortably trading around $54,000 after breaking above $50k earlier this week. According to Glassnode, more than 93.5% of circulating BTC are currently in profit at this price.

Interestingly it’s not just retail and the cryptocurrency industry that is getting excited about Bitcoin yet again. In fact, institutional investors at the regulated derivatives platform Chicago Mercantile Exchange (CME) are particularly driving the price action.

Bitcoin futures contracts are actually trading at an annualized premium of 12.8% to the spot price, the highest level since mid-April. Usually, Deribit has the highest basis and CME the lowest, but now the latter has exceeded Deribit’s, “implying large futures purchases on CME,” said Delphi Digital.

Additionally, just a week ago, the futures contracts were trading at a discount of 0.36%.

The increase in premium “suggests that there is high demand among the CME traders to build long exposure in bitcoin at the moment,” wrote Arcane Research in its weekly research note published Tuesday.

“The front-month contract on CME is by far the most frequently traded BTC futures contract on the exchange, and right now, bullish tendencies seem to be brewing on the institutional platform.”

this is the real flippening that everyone should be focusing on pic.twitter.com/mSGCyPZwuE

— Joshua Lim (@joshua_j_lim) October 6, 2021

On CME, a Bitcoin futures contract consists of 5 units of BTC. On Tuesday, when the BTC’s price finally went past $50k, the CME share of Bitcoin volume also hit an all-time high.

In terms of open interest, CME has risen to the second spot after going past $3 billion, just a spot behind Binance, which is recording $4.12 billion in OI, as per Skew. OI on CME actually rose pretty fast as on Sept. 29, a week back, it was standing at a mere $1.47 billion, according to Bybt.

“This shows how the market is trading a futures based bitcoin ETF as theme,” commented trader and economist Alex Kruger.

This intensified trading on CME is primarily in response to the high expectations for the US to approve a futures-based Bitcoin exchange-traded fund (ETF) as soon as next month.

As we reported, SEC Chair Gary Gensler has signaled his openness to a futures-based ETF on two occasions, increasing the hopes for getting approval for the same product before the year is over. Since Gensler’s positive comments, several firms have applied for such an ETF.

According to Eric Balchunas, Bloomberg Intelligence senior ETF analyst, there is a 75% chance of a Bitcoin Futures ETF approval this month, most likely the ProShares Bitcoin Strategy ETF on Oct. 18. ETF Store President Nate Geraci also sees the first US-listed futures ETF to be approved in two weeks.

Such approval would only lead to further buying pressure on CME bitcoin contracts resulting in a higher premium because the ETF would gain exposure to Bitcoin via CME-traded futures, as Gensler has said.

Bitcoin/USD BTCUSD 54,158.4117 -$698.64 -1.29% Volume 38.98 b Change -$698.64 Open$54,158.4117 Circulating 18.84 m Market Cap 1.02 t baseUrl = "https://widgets.cryptocompare.com/"; var scripts = document.getElementsByTagName("script"); var embedder = scripts[scripts.length - 1]; var cccTheme = {"Chart": {"fillColor": "rgba(248,155,35,0.2)", "borderColor": "#F89B23"}}; (function () { var appName = encodeURIComponent(window.location.hostname); if (appName == "") { appName = "local"; } var s = document.createElement("script"); s.type = "text/javascript"; s.async = true; var theUrl = baseUrl + 'serve/v1/coin/chart?fsym=BTC&tsym=USD'; s.src = theUrl + (theUrl.indexOf("?") >= 0 ? "&" : "?") + "app=" + appName; embedder.parentNode.appendChild(s); })(); var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~BTC~USD"); The post Institutions Making Large Bitcoin Purchases and Driving the Price Up as CME Futures Premium Surges to April Level first appeared on BitcoinExchangeGuide.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 69473.16 (+0.96%)
Объем 24H $48.117b
Изменеия 24h: 3.17 %, 7d: -3.96 %
Cегодня L: $69473.16 - H: $69473.16
Капитализация $1374.052b Rank 1
Цена в час новости $ 54122.24 (28.36%)

bitcoin price btc currently profit circulating again

bitcoin price → Результатов: 126


Фото:

Bitcoin’s bullish momentum seeking ‘euphoric’ market shift – Glassnode

Bitcoin (BTC) is showing the first signs of positive price momentum since June, as it attempts to convincingly break the $69,000 price zone and shift to a “euphoric bull market.” According to Glassnode’s latest “Week Onchain Newsletter,” the recent rally has seen Bitcoin’s spot price break through key technical and on-chain price levels, pushing many […] The post Bitcoin’s bullish momentum seeking ‘euphoric’ market shift – Glassnode appeared first on CryptoSlate.

2024-10-24 00:38


Bitcoin Cup And Handle Cascade: Analyst Says BTC Price Could Reach $230,000 If It Follows This Structural Path

A crypto analyst has projected a significant break to the upside for Bitcoin, drawing parallels to similar breakouts in traditional assets in the tune of the Gold and the S&P500. According to a technical analysis of the current price action, Bitcoin is playing out a cup and handle pattern, which could send it surging to bullish price targets above $230,000.

2024-10-22 22:30


Bitcoin Price To $95,000? Here’s What Needs To Happen First

The Bitcoin price has now broken above the $68,000 mark amid a run of a 12% price increase in the past seven days. However, analysis says the Bitcoin price will not stop this surge anytime soon. According to a detailed analysis posted on TradingView, a well-known crypto analyst has shared insights suggesting that Bitcoin is on track to climb even higher to reach an ambitious target of $95,000, but USDT.

2024-10-18 13:00


Bitcoin Poised For Minimum 60% Rally As 3 Critical Signs Align

Henrik Zeberg, a macroeconomist known for his expertise in business cycles, has pinpointed an upcoming rally of at least 60% for the Bitcoin price in his latest technical analysis. The seasoned analyst has identified a pattern across three critical technical indicators that have historically signaled major upward price movements when all aligned.

2024-10-18 11:30