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Bitcoin Hits 17-Month High, Institutional Interest Surges in Futures Market

Published 24/10/2023, 17:52
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Bitcoin has reached a 17-month high of $35,000 amidst optimism for a spot ETF approval. The rise in Bitcoin's value was marked by the listing of the BlackRock ETF ticker on the DTCC website. This comes as institutional activity is shifting towards the Chicago Mercantile Exchange (CME), with an open interest surpassing 100,000 Bitcoin, equivalent to $3.4 billion.

The CME's market share is approaching 25%, similar to Binance’s perpetual market, and it dominates traditional expiry futures with an 80% share, according to Vetle Lunde of K33Research. The daily Bitcoin futures volume on the CME has reached $1.8 billion.

Meanwhile, the Hong Kong CSOP Bitcoin Futures ETF has seen record trading volumes of $22.37 million and capital inflows of $17.64 million due to increased buying pressure from Asia.

These developments follow a pattern noted by Ashraf Laidi in which Bitcoin's value tends to spike in October. This trend began with Paypal's acceptance of Bitcoin in October 2020 and has been repeated in subsequent Octobers due to Bitcoin ETFs like Blackrock (NYSE:BLK)'s.

Prominent figures such as Larry Fink, referred to as 'The Big Kahunas', are accumulating Bitcoins, drawing parallels with pre-IPO shares allocation. They anticipate a surge in value before Thanksgiving despite potential profit-taking, with a target price of $35,000.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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