K33 research analysts have unveiled a comprehensive report shedding light on the escalating interest of institutional investors in Bitcoin, particularly in anticipation of the potential approval of a Spot BTC ETF. The report underscores a key indicator to emphasize this growing trend, offering deeper insights into the potential future landscape should these ETFs receive regulatory approval.

Bitcoin’s Rise: Derivatives Market Key Indicator of Institutional Interest

In the detailed report authored by K33’s Senior Analyst Vetle Lunde and Head of Research Anders Helseth, emphasis is placed on the derivatives market as a crucial gauge of institutional traders’ interest in Bitcoin. The report highlights a significant surge in open interest within the Chicago Mercantile Exchange (CME) derivatives market.

Specifically, K33’s report notes that CME’s open interest has surged by more than 3,400 BTC over the past week, with the overall open interest hovering near its all-time highs of 110,000 BTC. This surge in activity is attributed to traders seeking exposure to Bitcoin in anticipation of an “imminent ETF verdict.”

Potential Shifts in Market Dynamics Post-ETF Approval

With the prospect of ETF approval looming, traders are positioning themselves to capitalize on potential profits from this bullish event. Simultaneously, others are expressing genuine bullish sentiments towards the flagship cryptocurrency and are eager to gain exposure through accessible means, with the CME emerging as a primary avenue for this investor class.

K33 analysts particularly highlight the surge in open interest on the CME exchange since October, coinciding with the broader market rally fueled by speculations around the Spot Bitcoin ETF. Notably, this report comes at a time when Bitcoin is currently trading around $42,800, reflecting a decrease in value over the past 24 hours.

In November,  CME’s surpassing Binance in Bitcoin futures, a trend that persists according to data from Coinglass,. However, the K33 report anticipates a potential reversal in CME’s fortunes post-approval of Spot Bitcoin ETFs.

The report discusses the likelihood of a decline in CME’s open interest as institutional investors might opt to capitalize on profits or transfer their capital to the newly approved Spot ETFs. K33 elaborates that futures-based ETFs currently constitute 46% of CME’s open interest, predicting a shift in favor of Spot ETFs due to direct competition.

As institutional investors eye potential rotations of capital, the report envisions a decline in open interest associated with futures ETFs and an increased preference for Spot ETFs. The dynamic landscape suggests significant changes in market behavior as cryptocurrency markets continue to evolve.


Aima is a seasoned crypto journalist with a passion for decoding the complexities of blockchain technology and cryptocurrency markets. With a background in finance and a keen eye for emerging trends, she brings insightful analysis to her articles. Aima is dedicated to demystifying the crypto space for readers worldwide.

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