- A positive market sentiment and the growth in ETFs is driving the new trend.
- Per the latest report from a top research firm, it is also attributable to the aspect of regulations.
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Bitcoin futures listed on the Chicago Mercantile Exchange (CME) have recorded a higher premium than those on Binance – signifying an increasing activity by the institutional investors on the derivatives marketplace.
According to the data tracked by analytics firm Arcane Research, the BTC futures on CME are listed at an 8.7% premium reference index compared to a 6.3% premium on Binance. (A future is said to sell at a premium when its value exceeds the spot price.) That of Binance, according to the report, is at the highest since January last year.
It is one of the few instances that bitcoin futures at CME are outperforming Binance’s, where the latter often represents the unregulated offshore platforms. Arcane Research analyst Vetle Lunde tied the trend to the question of regulation. Large institutional investors are leaning towards regulated platforms like CME to place bullish bets amid the ongoing market recovery.
A changing sentiment boosting BTC futures at CME
Following the brutal bear market witnessed last year, characterized by the spectacular blowups of major crypto firms, BTC dropped as low as $15k. The flagship crypto would later stage a recovery at the beginning of the year – currently up more than 40% year-to-date – a factor also cited by the report as behind the new trend. Besides, the growth of the bitcoin futures exchange-traded funds (ETFs) is attracting institutional clients to crypto.
One such player is one of the largest bitcoin investors in the market, MicroStrategy. In an interview with Bloomberg, the CEO of the business intelligence firm, Michael Saylor, said that his company could turn to investing in Bitcoin futures. ‘‘In the future, we will always consider forward yields. We may find a way to generate yield this way,’’ Saylor said.
Even so, Bitcoin remains much favored by the investor segment compared to the altcoins (non-bitcoin cryptocurrencies.) In a separate report by Arcane Research released this month, the open interest in BTC futures on CME jumped up year today by upward of 6%, while that of Ether dipped by roughly 30%.
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