CME BTC futures open interest dips then rebounds to $5.64 billion as institutional investors adjust to volatility

Open interest (OI) of longs on CME BTC futures by asset managers reached $4.97 billion two weeks ago. This marks the metric's lowest point since early March and is a significant drop from the all-time high of $6.74 billion observed in the first week of July.

However, there's been a recent rebound, with OI increasing to $5.64 billion last week.

The recent dip suggests that asset managers have been reducing their long exposure to BTC, possibly in response to recent market volatility or as part of risk management strategies in a period of macroeconomic uncertainty. It is also worth noting that despite the recent decline in OI, the current OI is still significantly higher than last year.

For perspective, this figure stood at just $1.24 billion a year ago, highlighting substantial and sustained growth in institutional long interest in BTC.

Meanwhile, OI of longs on CME ETH futures by hedge funds hit a yearly low of $136.26 million. This is the lowest level since mid-October 2023, when it was at $138.47 million.

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Hedge funds having significantly decreased their long positions on ETH futures could indicate an increasingly cautious stance or increased desire to hedge their positions.

However, it is worth noting that long OI for CME ETH futures by asset managers have stood relatively strong, with $419.63 million this last week.

This figure is nearly double the $214 million recorded at the beginning of the year, which indicates that institutional interest in ETH remains relatively strong, regardless of recent volatility.

This is an excerpt from The Block's Data & Insights newsletter. Dig into the numbers making up the industry's most thought-provoking trends.