According to data from Skew Analytics, aggregate open interest for Bitcoin futures is up 20% month over month and over 175% year over year (as of December 10th). 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 December 10th, OKex had the largest open interest position ($1.2b), while Binance was sitting close in second ($1.1b). What is interesting is that the CME (Chicago Mercantile Exchange) follows very closely in third ($994M) and really highlights the progression of traders moving to fully regulated platforms over the course of this year.
The all time high was set just two weeks ago on November 24th according to Skew Analytics at $7.4billion. Currently aggregate open interest for Bitcoin futures sits at $6.9billion. On November 10th, one month ago, aggregate open interest for Bitcoin futures was near $5.9billion and a year ago today it was $2.5billion approx.
Nov 10 2020 -Dec 10 2020
Dec 10 2019 – Dec 10 2020
Unlike volume data, futures contracts open interest provides a better picture of investors’ total risk exposure. The sharp rise in Bitcoin futures open interest, specifically on the Chicago Mercantile Exchange (CME) shows that institutions are paying close attention and continue to enter this asset class in masses. Overall this shows progression in the market and general upward momentum for Bitcoin especially from institutions.