- CME takes 37% of Bitcoin Open Interest volume.
- Bitcoin has yet to embark on a strong bull run following the adoption of spot ETFs.
As approval for the spot Bitcoin ETF gained momentum, so did Open Interest, with CME recently taking the lead. What is the percentage of CME dominance and what implications does this rising Open Interest have for BTC?
CME dominates Bitcoin Open Interest
According to a recent update from Glass junctionCME has surpassed all other exchanges in Bitcoin Open Interest volume. The report showed that CME’s Open Interest reached a record dominance of 36%.
According to Mint glass According to data, the BTC Open Interest on CME at the time of writing was almost $6.4 billion. Binance and Bybit secured the second and third positions with over $4.2 billion and $3.3 billion respectively.
Furthermore, at the time of this update, only three other exchanges had open holdings of more than $1 billion.
A look at the Bitcoin Open Interest trend
A recent survey by Bitcoin Open Interest found that it has reached its highest point in the past nine months. At the time of this report, Open Interest across all exchanges was over $20 billion.
The attached chart showed a steady increase in Open Interest since approximately October 2023.
Source: Coinglass
This upward trend can also be attributed to the widely expected adoption of the spot ETF, which has increased traders’ expectations. The remarkable increase is also influenced by news of approvals that were initially dismissed as false but later confirmed.
This increase indicates a growing presence of institutional investors in the derivatives sector. Furthermore, it suggests that buyers are becoming more assertive in response to recent developments.
The financing rate remains positive, but here’s the catch
An examination of another crucial derivative metric, the Funding Rate, showed that Bitcoin holders continue to maintain their dominance over the long term.
As I write this, Mint glass graphs show a positive coverage ratio of approximately 0.01%. Despite the overall dominance of long positions, the decline in the chart indicates a less aggressive attitude among long holders.
Read Bitcoin (BTC) price prediction 2024-25
Furthermore, a daily time analysis of BTC showed that even though the price was above $46,000, there was a slight decline. At the time of writing, the stock was trading around $46,300, down slightly by less than 1%.
Considering this price trend alongside the current funding rate trajectory, it can be concluded that the BTC trend is leaning somewhat bearish.
Source: trading view