Many financial institutions’ hedge funds have significantly resumed their activity on the Chicago Mercantile Exchange in the last month.
August and the Chicago Mercantile Exchange data show that financial institutions are re-entering and resuming trading activity in Bitcoin Futures markets.
The best indicator is Open Interest on CME Bitcoin Futures, which has recovered from the May crash and is on its way to $2 billion.
Analysts at the Norwegian firm Arcane Research, which prepared this analysis, also published interesting findings of how hedge funds increased their short exposures in particular.
One of the main reasons, according to them, could be Grayscale, which offers a discount on its investment product Bitcoin Trust (GBTC). However, most funds anticipate that the GBTC discount will vanish soon, so they will likely try to lock in this position with futures.
On the other hand, other types of traders prefer long positions in the Bitcoin Futures market, where asset managers, in particular, play a significant role.