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The price of Bitcoin (BTC) continued to rise on Meanwhile, BTC hit $44,000 on Dec. 5 — a 19 month Dec. 5 and a BlackRock filing showed it received $100,000 in seed capital from an unnamed investor for its spot Bitcoin ETF.
CME’s Bitcoin futures open interest nears all-time high
Bitcoin futures open interest has reached $5.2 billion on the global derivatives giant Chicago Mercantile Exchange (CME), $200 million shy of its late October 2021 all-time high.
CME’s Bitcoin futures open interest grew from $3.63 billion to $5.20 billion over the last 30 days, Coinglass data shows
The surge has run parallel to Bitcoin’s 26% gain over the same time. Bitcoin is currently trading at just under $44,000.
From Oct. 1 to 21, 2021, open interest in CME’s Bitcoin futures surged from $1.46 billion to $5.45 billion which coincided with a drastic Bitcoin price jump, which went from $45,000 to $66,000.
IG Australia analyst Tony Sycamore told Cointelegraph the uptick singals a renewed interest in Bitcoin, but it doesn’t explain how CME traders are positioned.
Until CME’s report on Tuesday, Dec. 12, Sycamore said investors won’t be able to see exactly how the players at CME are positioned. It’s Nov. 28 report showed its “big players” were sitting net short.
“What we can’t see right now is whether the big players have gone from a net short to a net long, Sycamore said.
Bitcoin price hits 19-month high
Bitcoin’s price eclipsed $44,000 on Dec. 5, fueled by optimism that the SEC will approve a spot ETF in the same year of BTC’s next quadrennial halving.
The largest cryptocurrency reached a session high of $44,011, according to data from Cointelegraph Markets Pro and TradingView. Bitcoin’s price is up roughly 15% over the past week.
Pretty much the final boss for #BTC in this range for the RSI
If we get a God Candle like I said originally or just continue to grind upward as we have been; it would likely clear this on the RSI and the Price, which would open the door for much higher prices after this month… https://t.co/GYlQO1BJA8 pic.twitter.com/0yWh5q17kA
— Matthew Hyland (@MatthewHyland_) December 1, 2023
Adding to the bullish optimism is the expectation that the U.S. Federal Reserve will end its rate-hike campaign amid slowing inflation and a weakening labor market.
“Optimism around the Dec #FED rate decision and Jan #ETF decision can push things higher and fuel euphoria, so be prepared for what comes after that,” said Material Indicators, a trading source active on X (formerly Twitter).
The Fed’s final policy meeting of 2023 will take place Dec. 12 to 13, and it’s almost certain that policymakers will leave rates unchanged, according to CME Group’s FedWatch Tool.
BlackRock received $100,000 in seed funds for Bitcoin ETF — SEC filing
The world’s largest asset manager, BlackRock, received $100,000 in seed funding from an unknown investor for its spot Bitcoin ETF in October 2023, a recent filing showed.
The SEC filing revealed that the investor agreed to purchase 4,000 shares for $100,000 on Oct. 27, 2023, at $25.00 per share. The deal would see the investor “acting as a statutory underwriter with respect to the Seed Creation Baskets.”
This is so interesting in the nerdiest way.
— James Seyffart (@JSeyff) December 5, 2023
The latest filing by BlackRock also revealed certain details on the asset manager’s plans to pay the sponsor’s fee, where it plans to borrow Bitcoin (BTC) or cash as trade credit from the trade credit lender on a short-term basis. BlackRock can “charge their fees” via a loan instead of having to sell BTC (the ETF asset). That way, they “don’t impact BTC price that much.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
