While the likelihood of the SEC's approval of spot Bitcoin ETF applications increases, institutional investors' interest in Bitcoin also increases.
Because with the expectation that the SEC will approve the spot ETF, institutional investors moved in an upward direction and open interest in CME Bitcoin futures reached a record level.
According to Coinglass data, open interest in BTC futures has increased steadily since October and reached a historical peak of $6.21 billion. At the time of writing, it is around $6.19 billion.
Evaluating this increase at this point, K33 Research analysts stated that the increase in open interest in Bitcoin futures on CME shows that investors have an upward expectation in BTC and the market.
“As the expectation of approval of Spot Bitcoin ETFs increases, investors' bullish expectations also increase. However, investors should not forget that after such a large increase in open interest, a negative news may trigger a selling wave.
Bitcoin's decline after its initial jump triggered a wave of liquidations in the market, causing a massive drop in open interest in a short time. “
Bitcoin continues to trade at $46,630 at the time of writing.
*This is not investment advice.
