In anticipation of the upcoming US presidential election, institutions in the cryptocurrency market are positioning themselves for increased volatility in Bitcoin prices. There has been a surge in call option buying on CME bitcoin futures, indicating optimistic positioning towards the election. Additionally, borrowing in the crypto credit markets has been on the rise, as investors expect price volatility. Institutions, including prime brokerage firms and over-the-counter desks, are increasing inventory to provide margins to clients and peers and are positioning themselves for a potential bull market. The options market on CME bitcoin futures has also seen increased activity, with over $350 million notional value of November calls traded in the past week. This suggests that traders are betting on Bitcoin prices rising next month. Overall, these developments demonstrate the growing maturity of the cryptocurrency market and the increased interest from institutional players.



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