BTC - CME seeing record Open Interest as Institutions flood into BitcoinsteemCreated with Sketch.

in #bitcoinlast month

Institutions are finally showing up, and it's in part because of the foundation built over the last 2 years

Back in 2018, everyone and their dog anticipated that institutions would be showing up in droves after the stellar 2017 returns.

That was all well and good except for the fact those institutions never actually came.

They didn't come for a whole host of reasons, with custody and regulator uncertainty being some of the biggest concerns.

However, fast forward to late 2019 and early 2020 and we are finally seeing them start to show up...

The herd is finally arriving...

First it was evidenced by Grayscale talking about their record inflows in Q4 of 2019 for their bitcoin product.

https://steemit.com/bitcoin/@jrcornel/btc-institutional-money-is-finally-showing-up

Then it was Bakkt showing steadily increasing volumes on their physically backed bitcoin futures products, which were only available to institutional clients.

https://steemit.com/bitcoin/@jrcornel/btc-bakkt-bitcoin-futures-continue-to-see-increasing-demand

Now, it's massive volume across just about all the futures exchanges:

(Source: https://cointelegraph.com/news/cme-bitcoin-futures-see-open-interest-surge-as-global-volume-hits-25b)

The CME bitcoin product is currently seeing its large open interest ever...

Since the CME launched their bitcoin futures contracts, never before has the open interest been higher than it is right now.

The CME already had one of the most robust and liquid bitcoin derivative products out there, but it's getting even bigger.

Check it out:

(Source: https://twitter.com/skewdotcom/status/1218201409277059074)

This is likely evidence of new institutions finally getting involved in bitcoin and it's happening very much how I thought it might.

We spent the better part of the last 2 years building out the infrastructure for bitcoin investing, though the price was mostly crap.

Now that price is starting to pick back up again, there are more avenues than ever before for money to enter the space.

The last 2 years weren't a waste by any stretch and are likely going to help play a major role in bitcoin reaching new highs within the next 12-24 months.

Stay informed my friends.

-Doc

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I'm sure the futures market is a nice way to get a deal on cheap Bitcoin in a few months as the halving gets over-priced in. Make a deal now to buy [email protected]$9k in the future.

The question I have to ask myself is: will those futures trades get sold instantly at a profit and make the pump/dump less volatile? Perhaps Bitcoin options are a good thing after all.