Date Author Names Title
Ferko, Alex, Moin, Amani, Onur, Esen, Penick, Michael

Who Trades Bitcoin Futures and Why?

Global Finance Journal, Volume 55, February 2023

  • We analyze the traders active in the Bitcoin futures (BTC) contracts traded on the Chicago Mercantile Exchange (CME)
  • There are two primary trader types, those who hold almost exclusively BTC (concentrated traders) and those who hold BTC to diversify a broader futures portfolio (diversified traders). 
  • The prevalence of concentrated vs diversified traders changes over time. 
  • Diversified traders connect BTC markets to other futures markets through common holdings.
  • Trader composition in the micro contract is different than that of the full-size contract.