Bitcoin Product Breaks Record In Q2 Despite Market Crash, Here’s Why

Despite massive drop in Bitcoin price over last few months, some of the metrics still show there is widespread interest. With the recent launch of the first ever short Bitcoin ETF in the U.S., interest levels rose dramatically in a bear market. The sudden rise in Bitcoin options comes at a time when BTC fell by unprecedented levels in the second quarter of 2022.

Not All Is Dead With Bitcoin

This trend shows that not all is dry with respect to Bitcoin options trading. On the other side, it appears that the markets and Bitcoin is not quite alive currently as Bitcoin shows high volatility. As of writing, Bitcoin is trading at $19,688, down by about 4.50% in the last one week, according to CoinMarketCap. To put this in perspective, BTC went back and forth below $20,000 mark for as many as seven times in the last 30 days.

Meanwhile, data shows Q2 was the best quarter in terms of average daily open interest (OI) across all its crypto products. Also, cryptocurrencies were second best in terms of average daily volume (ADV), as per CME data. During the quarter, the average daily OI was 106,477 while ADV was 57,325 indicating .

Multiple Record Volume Days In ETH

According to Jean-Marie Mognetti, cofounder and CEO of CoinShares, micro Bitcoin and Ethereum options increased significantly to the ADV in first quarter. In that sense, Q2 was CME’s best quarter in many ways.

“When you factor in Micro BTC & ETH options outsized contributions to ADV in Q1 2022, Q2 was CME best quarter of all time in many respects. For instance, there were multiple record volume days in Ether and Micro Ether futures.”

Also, the adoption around micro Bitcoin options and micro Ether options has been impressive in the quarter. At the end of June 2022, the large open interest holders reached all time high at 404. This highlights the prevalence of institutional involvement, he said.

Mognetti added that the high volumes were a result of the launch of ProShares Short Bitcoin Strategy ETF and the short-bitcoin ETF.