The volume of open futures and interest contracts on derivative exchanges increased after the price of Bitcoin reached $ 11.7 thousand, highlighting the increase in institutional investment participation in the currency. < / p>

On October 12, the price of Bitcoin (BTC) rose above $ 11,700 on the Binance platform and the data shows that trading on derivative exchanges has also started to rise. < / p>

According to data from SCIO, open interest in Bitcoin futures on the Chicago Mercantile Exchange is on the rise.

The term open interest refers to the total amount of long and short contracts opened at a particular time, and is usually used to measure trading activity in the futures market.

daily volume across other enterprise-focused platforms, including LMAX Digital and Packet, also remains high. This indicates that the size of institutions is generally growing after Bitcoin's strong rally.

What is behind the momentum increase?

In the past two months, three billion-dollar conglomerates have announced significant investments in Bitcoin.

First, MicroStrategy, a US company listed on the Nasdaq Stock Exchange, said it has invested $ 425 million in Bitcoin. The company has made it clear that it will treat Bitcoin as its primary treasury asset, primarily as a hedge against inflation.

followed by a $ 81 billion payment cluster with an investment of $ 50 million. Square is also reported to have invested 1% of its portfolio in Bitcoin, indicating its robustness in its long-term growth.

On October 13, Coin Telegraph reported, Stone Ridge, a $ 10 billion asset management company, bought 10,000 Bitcoins. The company is now the third largest company in the United States to make a significant investment in Bitcoin in the past two months.

After the notable investments in Bitcoin from MicroStrategic, Square, and Stone Ridge, institutional demand for Bitcoin may grow naturally. The researchers in the Scio said: Open interest in Bitcoin futures on the Chicago Mercantile Exchange is recovering with the reopening of trading.

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