On Oct. 12 Bitcoin price (BTC) pushed above $11,700 on Binance and data shows trading at derivatives exchanges also began to spike.
According to data from Skew, CME Bitcoin futures open interest has started to recover. The term open interest refers to the total amount of long and short contracts open at a given time and it is typically used to gauge trading activity in the futures market.
CME Bitcoin futures volume. Source: Skew
The daily volume across other institution-focused platforms, including LMAX Digital and Bakkt, also remains high. This suggests that institutional volume is growing in general after BTC’s strong rally.
What’s behind the surge?
In the past two months, three multi-billion dollar conglomerates publicly announced significantly sized investments in Bitcoin.
First, MicroStrategy, a publicly-listed U.S. company on the Nasdaq, said it invested $425 million in Bitcoin. The company said it would treat BTC as its primary treasury asset, essentially as a hedge against inflation.