According to the information provided by the cryptocurrency data platform Skew, the number and amount of open positions in the Bitcoin futures of the Chicago-based CME Group started to increase again. It is stated that as of July 21, there has been a 16% increase in this amount and the total amount has increased to 450 million dollars.
— skew (@skewdotcom) July 22, 2020
The total amount of Bitcoin open positions was significantly low in July, and this increase shows that institutional investors are beginning to return. Open Position represents positions that are not expired and are still active. CME open positions, which broke the record with $ 316 million in February, fell to $ 107 million with the sharp decline experienced on March 12.
Of course, Bitcoin’s 50% decrease was effective in this. In the third quarter, the number of Bitcoin open positions on CME also dropped again, and the reason for this is stated as volatility.
Unlike unregulated platforms such as Huobi and OKEx, CME’s Bitcoin futures are known to directly address institutional investors. The announcement of names like Paul Tudor Jones that they will invest actually showed that Bitcoin refreshed the image in the eyes of institutional investors.
The fact that many central banks went to unlimited monetary expansion after March 12 made Bitcoin more attractive. Despite this, the price’s volatility seems to have kept the institutional investor’s attention away for a while.