After the spot Bitcoin ETF began trading, the open contracts of Bitcoin futures on the Chicago Mercantile Exchange fell by about 24%
Data compiled by Bloomberg shows that three weeks after the start of trading for 10 spot Bitcoin ETFs, open interest (or outstanding contracts) in CME's Bitcoin futures fell about 24% to 20,679 as of January 30. After soaring 157% last year due to expectations for the ETF, open interest hit a record high. Vetle Lunde, senior analyst at K33 Research, said that investors turning to U.S. ETFs and a cooling off in Bitcoin's rally could lead to "less activity" in CME Bitcoin futures, but they remain key to liquidity in the cryptocurrency market. He pointed out their potential role as hedging tools for authorized participants managing the creation and redemption of ETF units.
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