Open interest in CME Bitcoin futures fell by about 24% after the spot Bitcoin ETF began trading

According to data compiled by Bloomberg, 10 spot Bitcoin ETFs that began trading three weeks ago have led to a decrease of about 24% in open contracts for CME Bitcoin futures as of January 30th. Last year, Bitcoin saw a historic high in open contracts after a 157% surge due to ETF expectations. Vetle Lunde, senior analyst at K33 Research, suggests that investors turning to US ETFs and a cooling off of Bitcoin's rise may lead to a decrease in activity for CME Bitcoin futures, but they still remain a key source of liquidity in the cryptocurrency market. He notes their potential role as hedging tools for authorized participants creating and redeeming ETF units.