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CFTC Report notes drop in Institutional Investment in Bitcoin Futures


Per data published by Commodity Futures Trading Commission (CFTC) a decline has been noted in the overall institutional investment in Bitcoin (BTC) futures on Chicago Mercantile Exchange (CME). 

As of April 9, institutional investors and asset managers had 244 open long positions, a decrease of 71 from April 2, and 80 open short positions, nine less than one week before. Furthermore,  the data depicts  only three open spreading positions for institutional investors, 32 less than the previous week. 

This signifies a drop of 11%. Long positions have also dropped by almost 30%. This indicates a bearish sentiment among investors. There are 3,267 open long positions on the BTC futures contracts offered on the CME exchange, and 4,177 open short positions.

The week from April 2 to 9, there was in increase of 421 in short positions, while long positions saw a slightly smaller increase of 366.Purportedly an increase of  88% has been noted in institutional long positions compared to the previous week, with 315 long contracts opened by April 2. 

Wall Street strategist and co-founder of Fundstrat Global Advisors Thomas Lee further revealed last week that his “Bitcoin Misery Index” (BMI) recently  has hit its highest figure since June 2016. 

“Good--> Since 2011, BMI >67 only seen during $BTC bull markets. More evidence bull starting. Bad --> BMI >67 after peak, $BTC falls ~25% = Profit taking ST.”

As CoinMarketFeed reported last week, CME noted high trading volumes on  April 4, just after the price of Bitcoin surged .Bitcoin is currently trading around $5,053, noting a change of 0.66%.

In March, a Commodity Futures Trading Commission commissioner revealed that the U.S. regulator is working earnestly to approve multiple crypto-related applications. The list includes Bitcoin futures from institutional trading platform Bakkt.

Last month, news broke that United Kingdom-based crypto exchange and futures provider Crypto Facilities saw its trading volumes grow by over 500% after being acquired by crypto exchange Kraken.

The extreme fluctuations in the bitcoin futures market have always been inflicted by many speculations and cynicism. In mid-2018, CME was mired in controversy when a report published by Wall Street Journal alleged that a dispute between the Chicago Mercantile Exchange (CME) and four cryptocurrencies exchanges compelled the Commodities Futures Trading Commission (CFTC) to probe crypto markets for suspected manipulation.

Earlier, this year, Fundstrat Global Advisors co-founder Thomas Lee went into a diatribe against Bitcoin futures, suggesting that bitcoin futures contracts are likely to be linked to the cryptocurrency’s “gut-wrenching” decline.