Institutions and multi-asset investors returned to the crypto market last week, but not in a way the bulls would have liked to see.
"Institutional activity in CME has blossomed, but activity has been heavily concentrated towards the short side," Vetle Lunde said in a note to clients on Tuesday."CME’s November contract has traded at an extreme discount to spot in the last week." The number of active contracts, or open interest, on the CME has surged by nearly 37% to 93,000 BTC this month alongside an increase in discount, suggesting an influx of new money on the short side.
Griffin Blofin, a volatility trader from the crypto asset management firm Blofin, said the discount on the CME has been more significant than unregulated exchanges like Deribit and the situation may persist going forward.
godbole17 They know futures aren’t the real deal. Just like all derivatives, they ain’t worth shit.