Binance’s Bitcoin Futures Surpass CME: Is Bitcoin ETF Demand Decreasing?

– Advertisement –

• Binance, the world’s largest cryptocurrency exchange, has once again surpassed the Chicago Mercantile Exchange (CME), a global leader in Bitcoin futures.
• With an open position (OI) of $4.52 billion in value, equivalent to 105,130 BTC, Binance is currently the largest Bitcoin futures exchange.
• BlackRock’s spot Bitcoin ETF (IBIT) recorded an entry of over $137 million on Monday, representing an increase compared to the entry on the previous Friday.

The world’s largest cryptocurrency exchange, Binance, has surpassed the Chicago Mercantile Exchange (CME) in open positions in the Bitcoin futures market.

Binance Surpasses CME in Open Positions

The world’s largest cryptocurrency exchange, Binance, has once again surpassed the Chicago Mercantile Exchange (CME), a global leader in Bitcoin futures. Outflows from GBTC continue to decrease, and similarly, other spot Bitcoin ETFs from companies like BlackRock and Fidelity are also decreasing. Binance’s Bitcoin Futures open position (OI) has surpassed CME after four months. Demand for spot Bitcoin ETFs from institutional investors has been keeping CME at the forefront of futures trading for some time.

With an open position (OI) of $4.52 billion in value, equivalent to 105,130 BTC, Binance is currently the largest Bitcoin futures exchange. The Chicago Mercantile Exchange (CME) ranks second with an open interest of $4.35 billion, representing 101,410 BTC in value. The BTC OI on Binance increased by over 2% in the last 24 hours, while on CME, it dropped by over 3%. This indicates that institutional investors continue to demand spot Bitcoin ETFs.

According to Bitcoin ETF flow data until February 5th, spot Bitcoin ETFs recorded a net inflow of $68 million. Specifically, GBTC saw an outflow of $108 million, indicating a significant decline in demand for spot Bitcoin ETFs. BlackRock’s spot Bitcoin ETF (IBIT) recorded an entry of over $137 million on Monday, representing an increase compared to the entry on the previous Friday.

Critical Bitcoin ETF Options

Nate Geraci, the president of ETF Store, stated that the delay in the approval of spot bitcoin ETF options is regrettable. He also noted that historically, the liquidity leader in the ETF category has demanded higher fees. Geraci mentioned that Grayscale would need a robust derivative ecosystem around the core ETF to maintain its leadership and charge high fees. Currently, GBTC charges a management fee of 1.5% for its spot Bitcoin ETF.

Geraci believes that the longer the approval of spot bitcoin ETF options takes, the worse it will be for the current liquidity leader, GBTC. He added that he thinks the approval of options needs to happen promptly.

The BTC price is currently trading at $42,830 over the last 24 hours. The 24-hour low and high values are $42,298 and $43,494, respectively. Additionally, the trading volume has increased by almost 15% in the last 24 hours, indicating growing interest among traders.