The cryptocurrency market is always full of surprises, and the latest one is the unusual premium of Bitcoin (BTC) futures trading on the Chicago Mercantile Exchange (CME). According to data tracked by Arcane Research, three-month bitcoin futures listed on CME are trading at an annualized premium of around 8.7% to the underlying reference index. This is the highest positive basis since November 2021, when Bitcoin traded at record highs near $69,000.
The premium on offshore exchanges, mainly Binance, has also jumped to 6.3%, the highest since January 2022. This is a significant difference compared to the CME premium, and it is a sign that institutional investors are increasingly interested in Bitcoin.
The premium on CME is a sign that institutional investors are increasingly interested in Bitcoin, and it is likely to continue to rise as more investors enter the market. This could be a great opportunity for investors to capitalize on the potential of Bitcoin, as the premium could provide a cushion against any potential losses.
It is also important to note that the premium on CME is for standard futures, not perpetuals. Perpetuals are futures-like derivatives with no expiry, and they can be more volatile than standard futures. Therefore, investors should be aware of the risks associated with these types of investments before entering the market.
Overall, the premium on CME is a sign that institutional investors are increasingly interested in Bitcoin, and it could be a great opportunity for investors to capitalize on the potential of the cryptocurrency. However, investors should be aware of the risks associated with these types of investments before entering the market.