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Bitcoin and Ethereum futures contracts hit new records and most investors are betting on long long at ETH

May 14, 2020

The trading volume of Bitcoin and Ethereum futures contracts reached record numbers and show the growth of the digital asset market.

Futures contracts are investment instruments with which the trader can bet on the direction of the price movement of an asset.

When a trader buys a “long” (or “bought”) contract, he is betting that the price of the asset will rise. If you buy a “short” (or “sold”) contract, you believe that the price of the asset will fall.

Bitcoin and Ethereum futures contracts hit new records and most investors are betting on long long at ETHBitcoin and Ethereum futures contracts hit new records and most investors are betting on long long at ETH

One of the largest institutional players in the industry, the digital asset investment firm Bakkt, broke its previous record after a significant volume was recorded in future Bitcoin contracts.

As you can see from the latest skew cryptocurrency analysis service charts dated March 11, the volume of Bakkt’s BTC futures contracts was physically liquidated They reached $ 42 million, while the value of the contracts processed in $ increased to $ 9.8 million.

This Bakkt BTC trading volume was last seen on December 18 last year when the platform exceeded its first all-time high.

In terms of open interest, the Bakkt numbers are rose to $ 13 million on May 8, before hitting $ 11 million three days later.

An interesting escalation was also observed on another gigantic institutional trading platform, the CME (Chicago Mercantile Exchange).

The open interest in the platform has increased without interruption after the market crash on March 12 and has increased by more than 200% since the beginning of the year. According to Skew, almost $ 1 billion in Bitcoin futures contracts were traded on the platform.

Ethereum (ETH) has also recently caught the attention of futures traders.

According to Bitfinex data Shared by Josh OlszewiczWebsite retailers are more optimistic than ever about Ethereum.

He found that the number of ETH “Longs” contracts at Bitfinex reached a new all-time high and rose 1,619,876 contracts.

This number is more than three times the number of “longs” positions in early 2020 and more than nine times the number of long positions in the parabolic maximum market in 2018.

The dollar value of Ethereum Longs contracts also reached a new record of $ 308 million, according to Olszewicz.

Assuming that there is no leverage, it means that approximately 1.4% of all ETHs rely on Bitfinex.

For analysts, the growing volume and open interest figures for CME, Bakkt and Bitfinex futures contracts are an indication of the growing institutional interest in digital assets.

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