CME Bitcoin futures activity slumps to 14-month low as basis trade unwind drains institutional demand
The Block
CME Bitcoin futures activity has hit a 14-month low as the unwinding of institutional basis trades reduces market demand.Summary
CME Bitcoin futures open interest and trading volumes have declined significantly, reaching lows not seen since early 2024. This trend is primarily driven by the unwinding of the "basis trade," a strategy where investors buy spot ETFs and short CME futures to capture the spread. As the basis yield has compressed to levels near the risk-free rate, institutional interest has waned, causing CME to lose its top spot in Bitcoin futures market share to Binance.
(Source：The Block)