Bitcoin CME Futures' Open Interest Reaches Record High of $10B

• The notional open interest in CME’s bitcoin futures has risen past the $10 billion market for the first time.
• CME's futures market is now bigger than the market cap of litecoin, bitcoin cash and other top 25 cryptocurrencies.

The Chicago Mercantile Exchange’s (CME) bitcoin BTC$92,634.47 futures market is busier than ever.

On Friday, a record 28,899 standard futures contracts were open or active on the CME. That amounts to a notional open interest of $10.3 billion at bitcoin’s going market rate of around $71,500. The standard contract, sized at 5 BTC, is widely considered a proxy for institutional activity.

Meanwhile, open interest in micro futures, sized at one-tenth of 1 BTC, stood at 38,283, which equates to $273 million in notional terms.

The combined open interest of over $10 billion is twice as large as the peak of $5.2 billion registered during the 2021 bull market and bigger than the market capitalization of several top 25 cryptocurrencies like litecoin, bitcoin cash, and others.

An uptick in open interest alongside a price rise is said to confirm the uptrend. Bitcoin has rallied 70% this year and the bullish mood is also evident from the 15% annualized premium in futures relative to spot prices.

CME's regulated and cash-settled futures have long been a preferred venue for institutions and other market participants looking to gain exposure to cryptocurrency without owning it. Besides, authorized participants tied to U.S.-listed spot exchange-traded funds (ETFs) likely trade CME futures or CME futures-based ETFs to hedge their risks.

The CFTC-regulated exchange steadily climbed ranks last year to become the world's largest futures exchange in a pattern reminiscent of the 2020-21 bull run.