Skew data showed an open interest in the CME Group’s Bitcoin futures which are approaching all-time highs in U.S. dollar terms this week.
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Bitcoin futures open interest exceeds $450 million
After the drop following the BTC halving in May, the downward trend continued during the last month before rebounding in the last seven days.
Daily volume easily topped $300 million during the week, while open interest exceeded $450 million and was on track to exceed its historic high of $532 million at the time of this article’s publication.
Open interest refers to the total value of derivative contracts that have not yet been settled. High open interest coupled with low volume tends to suggest a speculative pattern among investors, and the rebound in volume provides a comforting signal that a sale can be avoided.
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This week alone, however, open interest has shot up by over 30% as the BTC/USD regains support levels at around $9,500.
The money is already in Bitcoin
As reported by Cointelegraph, the activity of institutional investors once again became a topic of interest for analysts. This week, U.S. regulators formally allowed registered banks to offer cryptomoney custody service, leading to projections of strong price growth if banks were serious about investing in Bitcoin.
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According to Capriole asset manager Charles Edwards, an asset allocation of only 1% to BTC would cause prices to rise, eclipsing the $20,000 record for 2017.
„It’s not hard to see where this is going,“ he added.
Grayscale, the investment firm that now owns more than 2% of The News Spy offering, recorded institutional revenues of $1.4 billion during the first half of the year.