According to a report by “The Block,” the open interest (OI) of Bitcoin (BTC) perpetual futures on the cryptocurrency derivatives exchange Deribit has reached a new annual high of $740 million, marking the highest level since Bitcoin reached its all-time high in November 2021.
The increase in open interest indicates that new funds are entering the market, demonstrating growing market participation and potential liquidity.
Justin d’Anethan, Head of Business Development for Keyrock in the Asia-Pacific region, believes that the premium on CME Bitcoin futures contracts is another indicator of increased institutional participation. According to data from The Block, asset management companies hold nearly $2.2 billion in long open interest contracts for CME Bitcoin futures, reaching a historical high.
D’Anethan added that the current motivation for experienced investors to participate may be influenced by the expected decision on a Bitcoin spot ETF in mid to late January next year. He believes that this is putting pressure on investors to trade ahead of the influx of funds that may enter the market after the introduction of more user-friendly Bitcoin investment tools.
However, D’Anethan also issued a warning: