Institutional Investors Flock to Cryptos; BlackRock ETF Ignites Surge

Institutional Investors Flock to Cryptos; BlackRock ETF Ignites Surge


According to a recent report, institutional investors directed their focus towards an array of cryptocurrency products in the previous month.

Institutional investors have reportedly been actively engaging in trading various financial instruments tied to Bitcoin and Ethereum, as indicated by data from CCData, a prominent crypto data provider.

Notably, there have been notable increases in spot trading volumes, derivatives trading, and the trading of CME Futures Contracts for these top cryptocurrencies.

The recent surge in interest surrounding digital assets last month can be attributed to the filing of the BlackRock spot Bitcoin ETF. This development seemingly played a significant role in driving the notable increase in investor engagement with these linked assets.

June's bullish market sentiment appears to be strongly influenced by the reported track record of 575 successful applications, indicating a high success rate. These numbers suggest that the BlackRock spot Bitcoin ETF filing is indeed the driving force behind the overall positive market sentiment observed during that period.

CCData's analysis reveals that the Chicago Mercantile Exchange (CME) experienced a remarkable surge in Bitcoin futures volumes during June, marking its best performance for the month. The volumes witnessed a significant increase of 28.6%, reaching an impressive $37.9 billion.

Bitcoin Micro Futures (MBT), another instrument in the market, witnessed a substantial double-digit surge as well. Trading at $702 million, the MBT contracts experienced a notable boost of 21.1%. These contracts are typically smaller in size, usually valued at one-tenth of a standard contract. Specifically, in the case of CME's Bitcoin Futures, the Micro Futures contracts are equivalent to 1/50th of a standard contract.

The latest report highlights that a total of 264,323 BTC contracts were traded, indicating a significant increase of 22.7% compared to the previous month. It is crucial to note that these contracts are backed by five underlying Bitcoin, reflecting the value and scale of the trading activity in the market.

CCData's analysis reveals that Ethereum-based instruments experienced a substantial increase as well. Over 97,000 ETH Futures contracts were traded, indicating a notable rise of 10.8% in June. It's important to note that in this case, the underlying asset for these contracts is 50 ETH, further highlighting the scale of the trading activity in Ethereum derivatives.

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Disclaimer:
This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.