Chicago Mercantile Exchange (CME) Bitcoin futures open interest (OI) has fallen to $8.41 billion, reaching its lowest level in 14 months. Analysts at Glassnode pointed out that this trend is mainly driven by the unwinding of basis trading, which previously involved establishing long positions via spot ETFs and hedging futures shorts to profit from the spread, but recently the annualized return has dropped from 15%-20% to around 5%, leading to profit-taking by institutions. Additionally, the daily trading volume of CME Bitcoin futures has shrunk below $3 billion. Analysts believe that as institutional demand shifts toward holding spot assets directly, leverage levels in the futures market are decreasing significantly. (TheBlock)

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