fbpx
Skip to content Skip to sidebar Skip to footer

Investors Turn Away from CME Bitcoin Futures to DeFi, Says Analysts

The demand for Bitcoin futures on the Chicago Mercantile Exchange (CME) has long been seen as an indicator of institutional demand for Bitcoin, and for the first time since May, open interest dropped to a low of $345 million on October 2 last week.

Since hitting a low in March this year following a crash in not only crypto but all financial markets as a result of the worsening COVID-19 pandemic, institutional interest in Bitcoin spiked to record new yearly highs. Open interest in CME futures peaked at a whopping $948 million on August 17 but has been on a downtrend ever since. As the week came to a close on October 2, Bitcoin futures dropped by almost 20%.

Undoubtedly, the impact of Trump’s positive COVID-19 test leading to the drop in a majority of stock indices and other assets such as gold, crude oil and crypto last Friday contributed to the dip in CME open interests. Some experts, however, also pointed out that investors shifting away from Bitcoin futures is hardly a black swan event. The signs of investors increasingly turning to DeFi to maximize yields and liquidity are apparent.

DeFi projects have managed to sustain their rewards in yield farming thus far, while Bitcoin’s significant drop in prices last month have rattled investors’ interest in the asset, albeit temporarily. Moreover, the low barriers of entry into the world of DeFi continues to attract new market participants in droves.

It remains to be seen how long this balance will last, given that DeFi has been on a persistent downtrend recently.

You may also want to read: Is the DeFi Bubble Close to Bursting?

Leave a comment

About SuperCryptoNews

SuperCryptoNews is a global leading blockchain & crypto news provider, covering daily news focused on trading and investment developments in bitcoin and crypto. We bring you expansive crypto news coverage around the world. We offer many thought leadership opinions from blockchain experts and leaders of the industry.

Subscribe to SCN

© Copyright of Novum Global Consultancy Pte Ltd {2020, 2021}. All rights reserved.

111 North Bridge Road, 21-01, Peninsula Plaza, Singapore 179098.

Phone: +65-80282938

Contact Us   |   T&Cs   |   Privacy Policy   |   About Us

About SuperCryptoNews

SuperCryptoNews is a global leading blockchain and crypto news provider, covering daily news on the latest tech and trading developments in crypto. We bring you expansive crypto news coverage especially in Asia, with a focus on Singapore, Thailand and Southeast Asia.

Follow Us On

© Copyright of Novum Global Consultancy Pte Ltd {2020, 2021}. All rights reserved.

Contact Us   |   T&Cs   |   Privacy Policy   |   About Us