Bitcoin ETFs and Open Interest From BTC Futures, Options Follow Crypto Economy’s Spot Market Decline

Roughly 247 days ago, the total bitcoin futures open interest across 12 different cryptocurrency derivatives trading platforms was $26.73 billion and over the last eight months, bitcoin futures open interest has dropped 60% down to $10.69 billion. Further, the bitcoin exchange-traded funds BITO and BTF have followed bitcoin’s spot market losses, as the bitcoin ETFs have shed between 70% and more than 73% in value since last year’s price highs.

Bitcoin Exchange Traded Funds Slide Over 70% in Value Against the US Dollar

On November 10, 2021, the crypto economy’s 24-hour spot market trade volume worldwide was approximately $181.54 billion and more than 10,000 crypto assets had a valuation of around $3.13 trillion. Today, crypto spot market trade volume is 37% lower, as the global 24-hour trade volume on July 15 saw $114 billion in trades, and the crypto economy’s 13,400 crypto assets had a recorded overall value of around $980 billion.

During the past eight months, data shows bitcoin futures markets and BTC-centric exchange-traded funds (ETFs) have taken deep losses during this year’s crypto bear market. Last year, when U.S.-based bitcoin ETFs were approved, the funds traded for much higher prices and have followed BTC’s spot market downturn.

Valkyrie’s bitcoin futures ETF, a fund that uses the ticker BTF on Nasdaq, traded for $26.67 on November 9, 2021, and on July 14, BTF’s price closed 70.19% lower at $7.95. The Proshares bitcoin ETF BITO has seen comparable losses, as the NYSE-listed BITO dropped 73.87% from $48.80 to $12.75 during the last eight months.

Bitcoin Futures Open Interest Slides, Options and Futures Volumes Spike

Much like the Valkyrie and Proshares bitcoin ETFs, the total bitcoin futures open interest has been on a downward spiral as well. According to recorded data, bitcoin futures open interest last November was awfully close to the all-time high of around $27.29 billion printed on April 14, 2021.

On November 10, 2021, the aggregate bitcoin futures open interest was $26.73 billion and bitcoin (BTC) was trading for $68,766 per coin that day. Since then, bitcoin futures open interest is 60% lower as statistics recorded on Thursday, July 14, 2022, show open interest was $10.69 billion.

While bitcoin futures volume was down this past April, metrics indicate BTC futures volume spiked in May and even higher in June hitting $1.32 trillion. Bitcoin futures market leaders, in terms of monthly trade volume, include crypto exchanges like Binance, Bybit, Okex, FTX, and CME Group.

While bitcoin options open interest followed the same pattern as BTC futures open interest, bitcoin options volumes also saw an increase in May and June. Just like bitcoin derivatives and exchange-traded funds, stocks with exposure to crypto assets like BTC such as Coinbase Global, Microstrategy, Marathon, Silvergate, Riot, and more have also followed bitcoin’s spot market action over the last eight months.

What do you think about the bitcoin ETF and derivatives products following the same pattern as bitcoin spot markets during the last eight months? Let us know your thoughts about this subject in the comments section below.