According to data from Skew Analytics, aggregate open interest for Bitcoin futures is at its highest point since March 11th. Open interest refers to the total number of outstanding futures contracts, that have not been settled. Aggregate open interest provides a more accurate picture of the futures trading activity, and whether money flows into the futures market are increasing or decreasing.
As of June 1st, BitMEX had the largest open interest positions, though BitMEX’s dominance in the Bitcoin futures market has decreased over the past several months. Huobi is currently the second most popular Bitcoin futures platform, followed by the CME.
Overall, the recent rise in aggregate open interest for Bitcoin futures signals that institutions are paying close attention to Bitcoin. “Institutional interest was on the rise since the beginning of the year, but it really took off after the unprecedented government response to the COVID-19 crisis.” said David Lawant of Bitwise Asset Management in a recent Cointelegraph report. Lawant also stated that “In the lenses of mainstream investors, 2020 is the year in which Bitcoin moved from being a venture capital bet to a macro hedge.” Regardless, this is certainly a trend to follow closely as the coming weeks and months progress.