These two trends suggest that Wall Street is in the midst of a Bitcoin buying spree

Despite the rapid maturity of the market, Bitcoin is still extremely prone to huge volatility .

The turbulence that has occurred in the past year has given people a deeper understanding of this, and the recent price movement may be sufficient to prevent some investors from entering the market.

Nonetheless, the data seems to indicate that Wall Street ’s interest in Bitcoin has never been as strong as it is now, because two key indicators indicate that institutions ’participation in the cryptocurrency market has skyrocketed in recent months .

Immediately after Paul Tudor Jones’ public comment on the bright future of Bitcoin, this is likely to spark greater institutional interest on Wall Street.


The difference between Bitcoin’s CME open interest and transaction volume

It turns out that CME is an excellent portal for institutions to gain Bitcoin exposure through futures and options without having to deal with the custody of actual BTC.

In recent years, the use of the platform has soared, and traders led the platform to a record high position in futures and options products a few weeks ago.

When looking for data on the use of CME futures, it has become increasingly apparent that traders have widely used it to obtain long-term exposure to BTC.

As can be seen from the following chart provided by the blockchain analysis platform Skew , there is a difference between the open positions of CME futures and the trading volume , although this has been shrinking in the past two weeks.


In mid-May, the open position was 532 million US dollars, but the overall trading volume hovered within the region of 300 million US dollars.

This difference shows that traders are more inclined to use futures to hold long-term positions rather than actively trade .

Gray scale accumulates a large amount of BTC, a symbol of institutional needs

To keep up with demand, Grayscale has been accumulating a large amount of bitcoin in the past few weeks.

An investor pointed out in a recent tweet that since the halving event a few weeks ago, the company’s Bitcoin Trust has purchased 18,910 bitcoins.

He also pointed out that during the same period, only 12,337 BTC were mined globally.


Although Goldman Sachs denied the importance of Bitcoin in a conference call on the 27th, and even thought that Bitcoin was not important, it also said that cryptocurrency is not an asset class at all.

But he finally added that this shows that no matter how large banking institutions like Goldman Sachs comment on bitcoin, in fact institutions on Wall Street are accumulating bitcoin in large amounts .

The original text is from bitcoinist and was compiled by the Bluemountain Labs team. The English copyright belongs to the original author. Please contact the compiler for reprint in Chinese.

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