Institutional Investment in Bitcoin Futures Follows Trend of Bitcoin Bull Run – Bitcoin News Now  

Bitcoin Bull Run—used to describe the bullish trend in bitcoin price—began with a 15 percent jump in bitcoin price. The bitcoin surge affected bitcoin price predictions, bitcoin news now and the entire cryptocurrency market. Beyond this, the Bitcoin Bull Run seemed to have further drawn the interest of institutional investors to bitcoin Futures and other investment vehicles as the CME posted record bitcoin futures trading volume that period. In bitcoin news now, the Commodities and Futures Trading Commission (CFTC) has released data showing that the institutional investment has cooled along with steadier bitcoin price in the last few days.

Institutional Investment in Bitcoin Futures Reduce According to CFTC Data

Commodities and Futures Trading Commission (CFTC), responsible for regulating Bitcoin Futures trading in the United States released data on Bitcoin Futures as of April 9. The document which was updated on April 12, showed that Institutional Investment in bitcoin futures dropped just after the Bitcoin Bull Run lost steam.

Per CFTC data, institutional investors and asset managers had 244 open long positions and 80 open short positions. Compared to the record from April 2, when bitcoin price spiked, the data represents a decrease of 71 long positions and 9 short positions which is 30% and 11% dips respectively. Also, the number of open spreading positions for institutional investors was only 3 on April 9 compared to 36 on April 2.

Institutional Investors Are Shorting the Bitcoin Price More

Following the spike just after April Fool’s Day, institutional investors had more shorts on bitcoin futures contracts than long contracts. According to CFTC data, the number open short position at the time was 4,177 compared to 3,267 open long positions on the BTC futures contracts. Between April 2 and 9, total short positions increased by 421 compared to an increase of 366 for long positions.

However on Chicago Mercantile Exchange (CME) which posted record bitcoin futures trading volume the number of long positions remained higher than longs for bitcoin futures. The exchange had posted jump of about 88% in institutional long positions that week while long positions dropped by 63%. The exchange went on to post a record high futures contracts trading volume brought about by optimism for the bitcoin bull ride.

Bitcoin Futures is Now Part of the Bitcoin (BTC) Market

The interesting correlation between Bitcoin (BTC) price movement and institutional investment in bitcoin futures and similar vehicles has led some analysts to conclude that these asset classes are extensions of the main bitcoin and cryptocurrency market.

As Smartereum reported  Mati Greenspan, an expert analyst with social trading platform eToro, predicted that the bitcoin (BTC) market would be significantly driven by Wall Street.

Having observed the relationship between the cash-settled bitcoin futures and the actual bitcoin market and concluded:

“Even though Wall Street’s contracts are only paper, and not settled in Bitcoin, they are still a significant part of this market now.”

Bitcoin Price Today – BTC to USD

NamePrice24H %

1 btc to usd is trading at $5,160 at the time of writing. BTC is up above $5,100 relieving fears from bitcoin proponents after slightly dropping below $5,000 during the weekend. Bitcoin BTC is trading in green like the rest of the top cryptocurrencies posting a gain of about 1.5% from yesterday.

Riccardo Lopp is a writer specializing in Crypto, ethereum and whole blockchain ecosystem. His background is in economics and statistics.


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