Bitcoin (BTC) Futures Trading Volume Hits ATH as Institutions Pile In

The Bitcoin BTC/USD market has seen a notable uptick in futures trading, with open interest reaching an all-time high (ATH) of $32.9 billion

The Bitcoin (CRYPTO: BTC) market has witnessed a substantial increase in futures trading, with open interest hitting an all-time high (ATH) of $32.9 billion, indicating rising leverage and institutional participation.

According to Glassnode's weekly report, a significant portion of this surge is being driven by a cash-and-carry strategy, where traders capture yield by holding spot positions while shorting futures contracts.

The cash-and-carry trade, which has become popular among institutional investors, is currently yielding around 9.6%, nearly double the rate offered by short-term U.S. Treasuries.

This strategy has played a key role in boosting futures open interest, as institutional traders seek exposure through regulated instruments, such as CME futures contracts, which saw open interest reach $11.3 billion — another ATH.

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"This product has provided the new wave of institutional investors with an instrument for regulated derivative exposure," the report notes.

The increase in CME futures open interest, coupled with ETF net flows, suggests that institutions are pairing long-spot ETF positions with short CME futures to capture yields through the basis trade.

While open interest is at a record high, volumes across futures markets have remained relatively subdued at $35 billion per day, especially when compared to the elevated volumes seen when Bitcoin peaked at $73,000 in March 2024.

This suggests that much of the current activity is driven by single trade basis strategies and arbitrage positions rather than directional trades.

As institutional involvement continues to grow, these trends will be further discussed at Benzinga's Future of Digital Assets event on Nov. 19, where industry leaders will analyze how strategies like cash-and-carry are shaping the future of Bitcoin and digital asset investments.

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