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Bitcoin futures open interest has reached fresh all-time highs ahead of Coinbase’s direct listing on the Nasdaq on April 14.
According to Glassode, a cryptocurrency industry data aggregator, Bitcoin open interest has surpassed $27 billion for the first time, as Bitcoin reached new peaks of $63,000. The occurrence of the milestone means that traders are speculating on higher values, though some may also be hedging against incoming fluctuations.
— glassnode (@glassnode) April 13, 2021
Binance sees the lion’s share in trading volume, with $5.2 billion in positions accounting for almost 20% of all remaining positions on the market. It is followed by Bybit, which has $4.66 billion, OKEX, which has $3.75 billion, and Huobi, FTX, and CME, which each have about $3 billion.
Despite the record open interest, Bitcoin futures volumes tend to have fallen over the past month, falling from $117 billion on March 15 to between $50 billion and $75 billion in April, according to Skew, a crypto derivatives data aggregator.
The dwindling amount could indicate that traders have been more wary about opening new positions as the deadline for Coinbase’s listing has advanced, with a large portion of open interest presumably covering positions opened in previous weeks and months.
Binance accounts for more than one-third of the $75 billion in BTC futures value traded in the last 24 hours, with $26.9 billion, led by Huobi with $14.5 billion, OKEx with $12.7 billion, and Bybit with $10.6 billion.
Open demand in Bitcoin futures, on the other hand, has decreased after a whopping $6 billion worth of contracts expired at the end of March. Options volumes jumped in April, indicating that many traders were hedging their bets as billions were mobilised to hedge against a drop to $40,000 last week.
Bitcoin is not the only market on which derivatives traders are speculating, with open interest in Ethereum futures reaching record highs of more than $8 billion in recent weeks as transactions rose.
The options markets for Ethereum have also seen a rise in activity, with open interest reaching 30-day highs near $3.2 billion. Volumes of ether options increased by 90% overnight, from $200 million to $380 million.
However, several Ethereum traders seem to be looking past Coinbase’s listing this week, with analyst Cantering Clark earlier this month noticing large volume targeting rates beyond $3,200 for the end of June.