Bitcoin futures at a record high- retail money coming back in?
Bitcoin has seen massive volume in the futures markets. Retail investors could finally be taking a renewed interest in Bitcoin and cryptocurrencies following regulatory updates from some of the world key economies.
The CME Bitcoin futures contract hit record volume on April 4th, hitting an equivalent of 112,700 BTC worth of futures contract.
This level of interest is very significant for several different reasons.
Firstly, the futures markets make up a significant portion of the actual volume of Bitcoin USD markets. The report only accounts for the CME futures, as CBoE has stopped their BTC futures service, and it does not account for the likes of BitMex and other exchanges that offer Bitcoin futures contracts.
The second reason is that it shows how much interest there in Bitcoin-related products from the big money players. Retail investors will not usually handle Bitcoin futures; this is much more the platform for larger Wall Street trading desks.
The volume shows the keenness by these Wall Street trades at present for Bitcoin products. They did more than half a billion dollars in futures in one day- a tremendous amount of money being invested in the futures contracts.
Also to consider is that when Bakkt launches their futures contracts, they will be settled in Bitcoin- complete contrast to the CME futures markets. This is massive, and this will introduce a very powerful dynamic to the futures markets.
These are some of the reasons why so many crypto enthusiasts are so hopeful of a Bitcoin ETF. It will bring a next level reality in terms of legitimacy to the crypto industry having these products freely trading on the markets. However, the volume we are currently seeing for futures contracts is without a doubt proving that legitimacy is here for crypto and growing all the time.
Retail interest continues to return to crypto in a big way. Google showed a massive spike in searches for Bitcoin, following the large spike in price last week. Bitcoin in the U.S alone became the seventh most searched term last week, as well as topping the list for China’s Baidu service.
It’s unsurprising that the retail buyers are looking at Bitcoin again when considering the price pump. Retail FOMO could begin to take place again, with many retail investors returning to buy Bitcoin at its peak prices again.