The Kobeissi Letter reported that Open Interest in Bitcoin futures contracts on the CME reached a record high of 51,000, with active positions increasing fivefold since the beginning of 2024. This surge in open interest coincided with the launch of spot Bitcoin ETFs in January 2024. The Kobeissi Letter speculated that spot ETFs, which provide direct exposure to Bitcoin, were the primary drivers behind the all-time high. Additionally, more Bitcoin futures contracts are cash-margined than crypto-margined, indicating their peg to the US dollar. In October 2024, a senior analyst commented that the growth in CME Open Interest was driven by active and direct market participants, rather than speculation or futures-based ETFs. Bitcoin outperformed other asset classes in 2024, but its price eased after the Federal Reserve announced slower-than-anticipated rate cuts. Despite market optimism, some market players warned about the volatility risks of Bitcoin.



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