Open Interest in Bitcoin Futures Hits Highest Level Since November 2021

Open interest (OI) for Bitcoin futures contracts on centralized exchanges has surged to $22.82 billion USD, approaching all-time highs last seen in November 2021, amid recent bullish movements in BTC prices.

Open Interest in Bitcoin Futures Reaches Highest Level Since November 2021

Open Interest (OI) serves as a measure of the total value of all outstanding or "unsettled" Bitcoin futures contracts on exchanges, providing an indicator of market price appreciation and trader sentiment towards a specific asset (in this case, BTC).

The total Open Interest (OI) for Bitcoin futures contracts on centralized exchanges (CEXs) has reached unprecedented levels not seen since November 2021.

Data from CoinGlass indicates that Bitcoin Futures OI has surged by over 30% since the beginning of 2024, currently standing at $22.82 billion USD, slightly below the $24.27 billion USD recorded in mid-April 2021.

Open Interest in Bitcoin Futures. Source: CoinGlass

Open Interest in the derivatives market of the U.S.-based CME has also witnessed a "significant leap" to $6.83 billion USD, surpassing the previous record of $4.5 billion USD set in November 2021 when Bitcoin first touched $64,000 USD.

This increase aligns with Bitcoin's establishment of a new ATH in 2024 at $52,816 USD - a 26% rise since the beginning of the year on Binance exchange - driven mainly by strong capital inflows into newly launched Spot ETFs in the U.S., including BlackRock, Grayscale, and Fidelity. Notably, BlackRock's IBIT fund attracted over $493 million USD, tripling the investment of the second-largest fund, Fidelity's FBTC.

1D chart of BTC/USDT trading pair on Binance, from January 1st to February 19th, 2024, showing a 26% increase. Image taken at 10:50 PM on February 19, 2024.

Since January 11, 2024, when the SEC officially greenlit these ETFs, they have attracted over $4.5 billion USD in a remarkably short period. On February 14, 2024 alone, ETFs totaling $631 million USD were purchased, underscoring growing investor interest in the cryptocurrency derivatives market.

Alongside Bitcoin Futures OI, the volume and Open Interest of Ethereum (ETH) options contracts on CME have also reached a new high of $518 million USD, marking a 35% increase from January 2024 and surpassing the previous all-time high of $510 million USD recorded in December 2023.

This surge is fueled by trader speculation regarding the approval of an Ethereum ETF, akin to how the SEC has approached Bitcoin ETFs. In fact, several Wall Street giants have filed applications for spot ETFs for Ethereum with the SEC, including BlackRock, Fidelity, Grayscale, Invesco, ARK Invest, Franklin Templeton, and VanEck.

Volume and Open Interest of Ethereum options contracts on CME have also reached a new high of $518 million USD, marking a 35% increase from January 2024. Image: TheBlock