Institutional Bitcoin Open Interest Plummets, But Why?

Institutional investors had FOMO’d into bitcoin with the release of the first Bitcoin ETF. This enthusiasm quickly died down the week following the approval as trade volumes plummeted. The record opening was quickly replaced by lackluster momentum that saw institutional investors pull out of the market, likely owing to the asset touching a new all-time high and traders taking gains. institutional Bitcoin open interest had skyrocketed with the price, signaling the entrance of big money into the market. The run-up had lasted until the very end of October. Open Interest saw its peak on October 29th. But since then, institutional bitcoin open interest has been on the decline, thanks to dying interest in the bitcoin ETFs. Now the market looks towards Spot Bitcoin ETFs as open interest dies down. institutional Bitcoin Open Interest Declines institutional bitcoin open interest had grown a whopping 185% in October alone. The approval of the ProShares Bitcoin Futures ETF had been the major push behind it. Traders had massively betted on the success of the ETF and their bets had paid off as the ETF saw more than $1 billion in trading volume in the first two days alone. Open Interest had climbed in this period. Related Reading | Bitcoin Breaks Above $68,000, Where Does It Go From Here? Open Interest has however declined in November. Although bitcoin has done well at the beginning of the month, institutional interest has not followed...