BTC futures soar, institutional investors seek "inflation hedge"

According to Decrypt, institutional investors are increasingly interested in Bitcoin, possibly due to concerns about changes in the purchasing power of fiat currencies.

Currently, the CFTC-regulated CME bitcoin futures exchange is the third-largest bitcoin futures market by open interest, according to analytics site Skew. Open interest on the CME hit a new high of $841 million earlier this week. Yesterday's latest figures put the figure at $800 million.

Grayscale BTC Trust holdings increased by 276: Jinse Finance reported that on January 29th, Eastern Time, Grayscale Trust’s holdings data changed as follows: Grayscale BTC Trust holdings increased by 276 (+0.04%), and the total holdings were 648,468 BTC; Grayscale BCH Trust positions increased by 1,327 (+0.5%), with a total position of 268,035 BCH; Grayscale LTC Trust positions increased by 3,604 (+0.28%), with a total position of 1,269,697 LTC; Grayscale ETC Trust The holdings decreased by 1011 pieces (-0.01%), and the total holdings were 12,298,582 ETC; Grayscale ETH Trust did not increase its holdings that day. [2021/1/30 14:23:58]

Futures contracts allow traders to buy or sell assets at a predetermined price in the future. In the case of bitcoin futures, investors are able to speculate on the price of the currency without actually buying bitcoin itself.

The poll to add HBTC to the Maker protocol will end in 5 days and is currently 100% in favor: The governance poll vote added last week by the Maker Foundation Interim Risk Group on whether to prioritize adding HBTC to the Maker protocol will Closing in five days, the option currently has a 100% approval rating. If the opinion poll vote can be passed, it can enter the administrative voting stage. [2020/8/26]

Unregulated exchanges like BitMEX or Binance are still king, attracting more investors than CME. But the latest data from Skew shows that regulated exchanges are quickly catching up.

Voice | John McAfee: BTC will continue to rise: John McAfee tweeted that, like voting in elections, we have to look at the long-term. It is really boring to chase the ups and downs of a few hours to make news, how much the currency price will fall below, and how much it will rise after a few hours. In the long run, it will keep going up. There is no need to be nervous when it falls, just try to watch it every few months. ​​​​[2019/5/19]

One possible reason for the growing interest in CME Bitcoin futures could be the recent devaluation of the U.S. dollar, eToro analyst Simon Peters told Decrypt.

“Institutional investors are increasingly backing bitcoin as a potential inflation hedge,” he said.

Charles Bovaird, vice president of Quantum Economics, also said: "Earlier this week, the open interest of CME Bitcoin futures trading exceeded $800 million, an increase of more than 100% from $365 million in July. This development is institutional Strong signal of rising investor demand."

“As to why they are more interested than before, I have a feeling that digital assets and blockchain technology are becoming more mainstream. Governments around the world are trying to create central bank digital currencies, and the proposed Libra project and the popularity it generates has accelerated this development."

Bovaird added that "pervasive money printing by central banks around the world" was also a factor. "All things being equal, having more units of currency, such as the dollar, chasing the same amount of goods and services will increase inflation," he said.

Interest in bitcoin's regulated derivatives market reached new heights earlier this month, shortly after U.S. regulators approved banks to offer crypto custody services to their clients, signaling further acceptance of crypto assets in the traditional financial world.

Author Amy Liu

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