Amid growing uncertainty and market volatility, the second quarter of 2023 saw a record number of large traders participating in bitcoin BTC 3.71% and ethereum ETH 2.76% futures regulated by the Chicago Mercantile Exchange (CME).
The continued surge in these digital asset futures trades underscores escalating institutional interest and confidence in the cryptocurrency space, with a clear shift toward regulated venues and products.
Data released by the CME shows an unprecedented increase in the number of large open interest holders, or entities that hold at least 25 bitcoin futures contracts.
The second-quarter average reached an all-time high of 107, underscoring growing enthusiasm among large investors.
Meanwhile, ethereum, the second-largest cryptocurrency by market capitalization, is not lagging behind in this trend wave.
Throughout the second quarter, the average number of large open interest holders in Ethereum futures reached a respectable 62.
This demonstrates the steady growth of Ethereum futures among large investors, adding to its growing acceptance and attractiveness in the financial market ecosystem.
The surge of large traders participating in Bitcoin and Ethereum futures is not just an isolated phenomenon. It is part of a larger trend of institutional interest seeping into the cryptocurrency space, largely driven by the need to find regulated venues and products to hedge against escalating market volatility.
Amid the current economic uncertainty, investors are increasingly turning to Bitcoin and Ethereum futures as viable investment options for managing risk and exposure.
This is reflected in the continued rise in institutional interest in Bitcoin futures throughout the second quarter.
Continued demand for risk-hedging tools has led to a surge in trading volume and open interest in Bitcoin and Ethereum futures and options.
These trading metrics hit record highs in the first half of 2023, reflecting the growing dominance and acceptance of these digital assets in contemporary financial markets.
