Macro update: Signs of steady institutional buying of Bitcoin

Quick Take

  • Institutional interest in CME BTC futues has gradually risen with the number of large open interest holders (entity with +25 BTC contracts) above 40 since November
  • Average daily volume is already up ~13% from 4Q through two months, while open interest (total number of open contracts) is up ~25% since last quarter
  • Uptick of Grayscale GBTC off yearly lows in November, and sustained contango of futures price to spot are important signals to monitor going forward

While Bitcoin continues to hover just below $4,000, the underlying macro picture is showing signs of steady, and growing interest from institutional investors starting to work its way through the data.

Yesterday, CME Bitcoin futures set a new record for volume traded in a single day with over 18,300 contracts traded, equivalent to ~91,690 BTC or ~$360 million in notional value (1 BTC contract = 5 BTC).