According to a report by Arcane Research. The report states that futures premiums for these derivatives have risen in the past week, with the 3-month basis for Binance reaching levels not seen since April 2022. However, open interest in Binance futures remains relatively low at 6,600 BTC.
The CME basis has also seen a significant resurgence over the past two weeks, reaching 0.7%, the highest since September 2022. This suggests that institutional traders are becoming more bullish about the market. Additionally, Arcane notes that for the first time since early November, the near-term futures structure for CME is no longer in backwardation, indicating that institutional traders are more comfortable investing in longer-dated maturities for cryptocurrency derivatives.
Despite the increased premiums, futures continue to trade at conservative levels compared to the typical annualized premium of 5-15% seen from 2019 to November 2021. This is due to the bear market of 2022. Furthermore, the ETFs offered by ProShares contributed a positive net flow last week, with the main reason being substantial withdrawals from the ProShares BITI short BTC ETF. The levels are now similar to those before FTX's collapse. BITI now holds an exposure equal to 4,435 BTC and its short position has decreased by 27% YTD.
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