The Coinbase premium has turned positive for the first time in weeks, signaling renewed demand from U.S. investors, according to an analyst.
"Trump's victory brought back U.S. investor bitcoin demand, and the Coinbase premium got positive for the first time since Oct. 18," CryptoQuant Head of Research Julio Moreno told The Block.
The positive premium on Coinbase, a popular platform for U.S.-based investors, suggests increased buying interest — especially from institutional players who use Coinbase for large transactions.
The Coinbase bitcoin premium has turned positive for the first time in many weeks, indicating renewed demand from U.S. investors. Image: Coinglass.
In a signal of increased institutional investor demand, CME bitcoin futures' daily trading volume reached an all-time high of $13.15 billion yesterday. According to K33 Head of Research Vetle Lunde, CME’s 2024 average daily trading volume for bitcoin futures is currently $4.56 billion — higher than even the surge in trading volumes seen around the FTX collapse in early November 2022. This milestone suggests a shift in bitcoin’s trading activity, with an increasing role played by institutional investors.
"Throughout 2024, CME’s trading activity has consistently outpaced offshore exchanges. This trend shows heightened interest from institutional investors who rely on regulated exchanges like CME for greater security and compliance," Lunde said. Notably, CME open interest, a measure of the total outstanding contracts, surpassed Binance’s OI on Nov. 10, 2023, and has held that lead for 362 out of 363 days this year, the K33 analyst added.
Bitcoin futures open interest exchange dominance. Image: K33 Research.
Additionally, CME bitcoin futures' average monthly open interest has already reached a record high of $11.73 billion just one week into November, according to The Block's Data Dashboard.
The options market has also experienced a significant uptick, with open interest across all crypto derivatives exchanges reaching $25.2 billion — approaching the March all-time high of $30.2 billion, according to a report on Thursday from Glassnode. Options trading volume has also risen to $2.9 billion, a level last seen during major market events, such as the yen carry trade unwind on Aug. 5.
"This again highlights the growing presence of institutional-grade investors, utilizing sophisticated instruments to express their market opinion," Glassnode analysts said.
Currently, the price of the largest digital asset by market capitalization is changing hands just below the $75,000 mark, and has traded up around 1% over the past 24 hours, according to The Block's Price Page. Meanwhile, the GMCI 30 index, representing a selection of the top 30 cryptocurrencies, has increased by 2.75% over the past 24 hours to 134.03.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
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