Bitcoin While the price continues to reach the highest levels in its history, the increase in leveraged transactions is also notable. Leveraged futures exchange-traded funds are attracting similar attention as spot Bitcoin ETFs, particularly VolatilityShares’ 2x BTC Strategy ETF (BITX).
According to K33 Research data, this fund attracts monthly inflows of $630 million, which puts it just behind giants like BlackRock and Fidelity in terms of inflow volume.
Bitcoin Futures ETFs Are in High Demand
Currently, futures-based Bitcoin ETFs stand out with a record exposure of 83,300 tokens. Meanwhile, leveraged ETFs account for about 25% of open interest on the CME, a major market for crypto derivatives. K33 Research reported that futures premiums on the platform were as high as 20% during the peak of open interest.
According to a news release as reported by Koinfinans.com, the increased interest in 2x leveraged BTC ETFs indicates a growing demand for leveraged long-term exposure to BTC. It is also consistent with the increased risk appetite observed in BTC derivatives. The increase in open interest is particularly due to “massive inflows” into the fund.
VolatilityShares’ 2x fund currently holds the Bitcoin equivalent of 36,025 tokens, according to K33 data. This shows that the cryptocurrency under management more than doubled in the first 11 days of March.
Growing interest in such funds is spurring the launch of several new offerings. For example, ProShares plans to launch five leveraged long and short BTC ETFs next month to meet growing market demand. Additionally, Valkyrie also recently launched its 2x leveraged product.
Demand for Leveraged Transactions is Increasing
According to the latest data, investors cryptocurrency They are turning to leveraged bets to benefit from the bull run in the market. US-based institutions generally prefer regulated offerings such as crypto futures on CME, while offshore institutions often turn to platforms such as options contracts on Deribit.
Funding rates for Bitcoin perpetual futures, a critical indicator for leverage in the crypto market, remain extremely high on major offshore exchanges. Deribit, a leading crypto options trading platform, also witnessed record open interest and a significant increase in bullish positions in Bitcoin.
