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Bitcoin Open Interest Hits $20B+ as Investors Await ETF News
Bitcoin open interest spiked to $20.43 billion on Tuesday as investors brace for the SEC's decision on spot Bitcoin ETFs.
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The total bitcoin open interest surged to $20.43 billion on Tuesday, Coinglass data shows. The upswing comes as investors await a decision from the US SEC on the first stack of spot Bitcoin exchange-traded fund (ETF) applications.
Bitcoin Open Interest on CME Hits All-Time High
The crypto community is poised to learn whether the US SEC will approve the first batch of spot Bitcoin ETF applications this week.
As the hype and anxiety grow, Bitcoin’s open interest jumped to $20.43 billion, according to Coinglass data. The CME exchange contributed $6.19 billion, marking a new all-time high.
$4.56 billion came from Binance, the world’s largest cryptocurrency exchange, while BTC’s open interest on Bybit stood at $3.55 billion at the time of writing. Other exchanges where open interest is higher than $1 billion include OKX, Bitget, and Deribit.
Over the past 24 hours, the most substantial increase was seen on CME, where open interest rose more than 15%. Compared to a month ago, the Bitcoin open interest increased by around 19% on CME, Coinglass data shows.
Bitcoin open interest refers to the total number of outstanding derivative contracts, such as futures and options, that have not been settled or closed. It serves as a key metric in assessing market sentiment and potential price movements, reflecting the total exposure and interest in Bitcoin derivatives within a given period.
When is a decision on Spot Bitcoin ETFs Expected?
The excitement around a potential spot Bitcoin ETF approval is among the primary catalysts behind the significant price rebound in the world’s largest cryptocurrency. Sitting just below the $46,000 mark, BTC saw a whopping 171% price surge over the past year.
It all began in June 2023, when BlackRock, the largest global asset manager, filed for a spot Bitcoin ETF. In the following months, several Wall Street firms followed suit.
If the SEC approves the applications this week, it would be the first time the securities regulator allowed the launch of a spot Bitcoin ETF in the US. The move would expose investors to BTC without directly holding it, potentially drawing billions more dollars into the flagship cryptocurrency.
Multiple issuers said last week they expect to receive the final approval of S-1 filings by late Tuesday or Wednesday. Meanwhile, regulators have also been working with exchanges to finalize their 19b-4 filings, which cover the rule changes the SEC must approve for spot BTC ETFs to launch. Exchanges submitted revisions to 11 of those filings on Friday.
If the SEC approves spot Bitcoin ETF this week, do you expect an immediate upswing in cryptocurrency’s price? Let us know in the comments below.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
