The series of glad tidings surrounding the Bitcoin ecosystem recently serves as consolidation for the digital asset as its value continues to trend up in the market.
After recording a daily increase in volume of about 500% in April, CME Bitcoin Future Options and Open Interest has shown great sign of positivity for the digital asset.
As revealed by crypto tracking platform Skew, the CME Bitcoin futures open interest is rising rapidly now that the halving draws closer.
Yesterday, May 6, the CME Bitcoin Options recorded a tremendous rise of about 1000%. Similarly, it tried to maintain the high-level today with a slight surge.
After presenting about $1 million trading volume on May 5, the Bitcoin Options volume surged to around $9.7 million on May 6.
The Bitcoin Options, according to Skew, saw massive growth yesterday and it maintained the level today, signifying a strong activity.
202 CME bitcoin options contracts traded yesterday, a new record in terms of $ notional
May20 10k and 11.5k calls traded in 100 lots, equivalent to 500 bitcoin options each pic.twitter.com/zBgTgTVWDe
— skew (@skewdotcom) May 6, 2020
As of today, the volume of the Bitcoin Options is slightly above $10 million.
Options also had a second consecutive day of strong activity pic.twitter.com/8BMYQ3AKcf
— skew (@skewdotcom) May 7, 2020
CME Bitcoin Futures Open Interest Breaks New Record, Hit $400 million Milestone
In another intriguing update, the CME Bitcoin Futures Open interest also surged significantly, clinching a milestone of $400 million.
CME Bitcoin futures open interest moves up to $400m, a new high. pic.twitter.com/wWKt7QEneR
— Unfolded (@cryptounfolded) May 7, 2020
According to a crypto analysis firm Arcane Research, the latest milestone recorded by the CME open interest surpassed its previous high – $392 million presented in June 2019.
This is a sign that institutional investors are pouring funds into the Bitcoin ecosystem as they remain optimistic about the upcoming halving. The increase in the growth rate of the open interest has been noticed since March when Bitcoin was trying to stage a recovery.
This shows that Bitcoin is getting more exposure, and it can help the cryptocurrency in pushing up its price to 5 digits and Bitcoin continues to linger around $9,000.
Professional traders just pushed the Open Interest on CME to $399 million yesterday, a new all-time high. Still, the daily trading volume is not seeing the same growth, indicating less trading-driven and more exposure-driven activity on CME. (Source: @skewdotcom) pic.twitter.com/UKY9dVKAF7
— Arcane Research (@ArcaneResearch) May 7, 2020
Contrary to the surge witnessed in April, the volume of the CME Bitcoin future is yet to see a significant rise. On April 24, NewsLogical reported that the Bitcoin future surged to around $500 million within a day from around $100 million, recording about 500% rise within a day.
Skew in summary explained that the trading volume, compared to the open interest, is yet to show sizeable growth.
“Still, the daily trading volume is not seeing the same growth, indicating less trading-driven and more exposure-driven activity on CME,” Skew noted.