According to Odaily, Gabriel Selby, Chief Research Analyst at CF Benchmarks, has reported that spot Bitcoin ETFs have led to an 80% increase in open contracts in the CME Bitcoin futures market so far this year. The rise in open contracts can be attributed to the underlying trading between spot Bitcoin ETFs and futures contracts at the Chicago Mercantile Exchange (CME). This activity by institutional investors is said to enhance Bitcoin's liquidity and lay the groundwork for a more robust and interconnected market ecosystem.
The interaction between spot Bitcoin ETFs and CME futures contracts is believed to promote arbitrage opportunities. As institutional investors engage in this activity, it not only increases the liquidity of Bitcoin but also strengthens the overall market ecosystem. This development is significant as it indicates a growing interest and involvement of institutional investors in the cryptocurrency market, which could potentially lead to a more stable and mature market in the future.