CME loses top spot to Binance in bitcoin futures open interest as institutional demand wanes

Behind the move is a sharp narrowing in the profitability of the basis trade, in which traders attempt to capture a spread by buying spot bitcoin while selling BTC futures.\nWhat to know : Binance has now become the largest venue for bitcoin futures open interest with roughly 125,000 BTC, or about $11.2 billion in notional value. CME bitcoin futures open interest has fallen to around 123,000 BTC, its lowest level since February 2024. Tightening spot futures spreads triggered basis trade unwinds and reduced institutional demand on CME.