In the last few 10 months, the king of crypto, Bitcoin, has been through unprecedented turbulence. From dropping to as low as $3,800 to skyrocketing up to $10,500, Bitcoin has endured an immense period of uncertainty.
Even though the digital asset showed remarkable volatility, this could not deter the large market players from getting attracted to cryptocurrency. Paul Tudor Jones, a macro investor, is one of the first traditional investors to publicly acknowledge his interest in Bitcoin buying frenzy. The data depicts that an increasing number of traditional investors in Wall Street are turning towards Bitcoin buying.
The key metric represents that the increased institutional involvement has been the key factor that is responsible for the upsurge in the crypto market in the past few months. Moreover, acknowledgment of Paul Tudor Jones publicly regarding the bright outlook of Bitcoin may have triggered greater institutional interest.
While other investors are also reporting hefty buying of Bitcoin at the big corps such as the Grayscale Bitcoin Trust.
CME shows Bitcoin buying frenzy
The CME has shown itself to be a significant gateway for the institutions to get to know Bitcoin through futures and options, without the need of having custody over actual Bitcoin.
Recently, the platform has witnessed its usage rocketing up, as the traders are leading it to see the record high open interest on futures and options products a few weeks ago.
The CME futures usage data shows that traders have been using it extensively, in order to gain exposure to Bitcoin on a long-term basis. In May, the open interest remained at $532 million, while trading volume was floating within the region of $300 million.
This clear divergence tends to indicate the tilt of traders towards the usage of futures, in order to take long-term positions, instead of trading actively.