Demand for Bitcoin Futures Declines as ETF Transition Ends GBTC Arbitrage Opportunity

Interest in Bitcoin future contracts has declined after the introduction of US-based exchange-traded funds that directly invest in the primary cryptocurrency, hinting at the potential influence of these new financial products on cryptocurrency market dynamics.

The volume of unsettled contracts, also known as open interest, in CME Group’s Bitcoin futures saw a decrease of roughly 24% to 20,679 as of January 30, following the commencement of trading for 10 spot-based ETFs three weeks prior, according to Bloomberg’s collected data. This followed a period of all-time high open interest subsequent to Bitcoin’s 157% rally last year, partly in anticipation of the ETF launches.