As lesser investors flee the FTX-ravaged cryptocurrency sector, institutions are ratcheting up their long positions in the futures markets for the two leading tokens.
Ether saw an even-steeper 62% jump in futures open interest relative to the end of October. These contracts are for 50 coins, or approximately $61,250. The combined CME Group open interest for bitcoin and ether reached approximately $1.5 billion on Friday.
Far from dissuading institutions from trading in crypto futures, the rise in volatility has attracted CME market participants, including ProShares for its Bitcoin
Gibraltar-based LMAX Digital, one of the most respected spot crypto exchanges for institutional clients, experienced a 133% rise in its daily trading volume since Nov. 4, prior to the FTX collapse.
In that time period, the global cryptocurrency market has shrunk 22.3% to $823 billion.
Cryptocurrency prices have been punished by the fall of FTX, the Bahamas-based crypto exchange, and its sister company Alameda Research, a hedge fund. Bitcoin retreated to 2020 levels as low ast $15,892 over the weekend. It has since recouped to $16,359 per bitcoin, though still 23% down from Nov. 4, according to Nomics.
Ether has also tumbled 25% over the same period to $1,224.
Deposits into cryptocurrency have also increased. While retail customers may be reeling from frozen funds and billions in limbo because of the FTX bankruptcy, Europe-based Coinshares, a large spot crypto money manager, reported inflows of $42 million to the digital-asset fund industry during the first week of the FTX crisis. This was the highest amount of inflows after two months of no meaningful change in fund assets under management.