Bitcoin perpetual futures open interest on the Deribit derivatives exchange has reached a yearly high of $740 million. This is a level not seen since November 2021, when Bitcoin surpassed its all-time high of $68,000.
Increasing open interest means new funds are entering the market, indicating increased participation and potential liquidity.
Deribit chart shows Bitcoin perpetual open interest at yearly highs.
CME Bitcoin Futures Premium Increase
Justin d’Anethan, Keyrock’s head of business development for APAC, suggested that the existing premium on the CME Bitcoin futures contract is another indicator of increased institutional participation.
“You’re bound to see a healthy futures premium in the CME contract, which suggests that’s what some large, sophisticated players are looking for. 
BTC
+2.70%
I was exposed,” d’Anethan told The Block.
Keyrock management’s observations are supported by The Block’s data dashboard, which shows an all-time high for the asset manager’s CME Bitcoin long open interest. According to data from The Block, long-term Bitcoin open interest held by asset managers is nearly $2.2 billion.
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D’Anethan added that the current involvement of sophisticated players “will be bolstered by the fact that decisions on spot Bitcoin ETFs will have to be made by mid/late January.”
He added that this is putting pressure on investors who have not yet driven the capital flows that could come into the Bitcoin market after easier investment vehicles are offered.
However, d’Anethan cautioned, saying the cryptocurrency market likes the game.
“When everyone is long, it is not inconceivable to imagine large players driving prices down and triggering liquidation of leveraged longs,” he added.
Bitcoin was trading at $41,875 at 3:47 PM ET on Monday, up 5.8%.
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