CME Bitcoin Futures Open Interest Drops for Four Consecutive Days, While BlackRock’s Bitcoin ETF Sees Major Inflows
CME Bitcoin Futures open interest has fallen for four straight days, according to the latest data from CME, reflecting a decline in leveraged positions within the market.
In contrast, BlackRock’s iShares Bitcoin (BTC) Trust ETF (IBIT) has seen a surge, with $970.9 million in inflows, marking its second-largest net inflow since its launch in January 2024, as reported by Farside. Monday alone accounted for $591.2 million in new capital. This influx stands in sharp contrast to the significant outflows from other Bitcoin ETFs: Fidelity’s FBTC saw a drop of $86.9 million, Bitwise’s BITB lost $21.1 million, and ARK’s ARKB experienced outflows of $226.3 million.
The increase in IBIT inflows comes amid a 7.2% rise in Bitcoin’s price over the past seven days, with BTC now trading at $94,900. Since April 22, IBIT has attracted over $4.5 billion in net inflows, defying the broader market trends.
Industry experts are taking notice of the ETF’s growth. Nate Geraci, President of The ETF Store, remarked:
“Nearly $1 billion into iShares Bitcoin ETF today… Second-largest inflow since January 2024. I remember when people said there was ‘no demand.'”
Eric Balchunas, Senior ETF Analyst at Bloomberg, added:
“ETFs are in ‘two-steps-forward mode’ after taking one step back, which is exactly the pattern we predicted.”
On the derivatives market side, CME Bitcoin Futures open interest has continued its decline, dropping to 132,750 BTC, reflecting a trend of falling open interest for the fourth consecutive day. This decrease in open interest signals a reduction in leverage and futures market activity.
However, the drop in open interest could soon reverse, as the annualized basis yield has climbed from around 5% to 9% in April, according to Velo data. This resurgence in profitability from basis trades could lead to renewed activity in the futures market, potentially causing a short-term rebound in open interest.
Why it matters:
In a basis trade, investors buy spot Bitcoin and short Bitcoin futures to capitalize on the price difference between the two markets. When the yield is high, demand for futures increases, pushing up open interest. Conversely, when the yield narrows, fewer traders are willing to engage in this strategy, resulting in declining open interest, which indicates less leverage and market activity.
