CME Bitcoin Futures Activity Hits 14-Month Low

CME Bitcoin futures experienced a significant downturn, with average daily open interest falling below $8 billion in March and $7.2 billion in early April, marking the lowest levels since February 2024. This decline, which has persisted for five consecutive months, is attributed to the unwinding of the basis trade. This strategy, involving buying spot ETFs and shorting CME futures to capture the spread, was a primary driver of institutional demand. Consequently, CME has lost its position as the leading Bitcoin futures exchange to Binance for the first time since November 2023.