Over the week ending February 20, the number of open contracts for bitcoin futures on the CBOE has bounced back to 6,050 from 5,704, as the price of the underlying asset recovered from the correction that took place in early February. This is according to the report filed by the Commodity Futures Trading Commission (CFTC).
The net short position held by the bigger players decreased from 1,875 to 1,608 contracts over the period, whereas long positions went up from 2,765 to 3,630 contracts, and short positions increased from 4,640 to 5,238 contracts. The net short position held by the institutional investors raised from 119 to 255 contracts.
As for the smaller players, their net long position over the same week decreased from 1,875 to 1,608 contracts. Long positions decreased from 2,769 to 2,412 contracts, while short positions were down from 894 to 804 contracts.
By the bigger players we here mean the participants obliged to submit regular reports to the commission, including brokers, externally financed investment funds, and others.
The figures above do not take into account the positions that are part of spread trading strategies, where traders open both short and long positions simultaneously.
The CBOE began trading bitcoin futures on December 12, followed by the CME Group on December 18. However, the CME Group data are still not reflected in the weekly CFTC report.
When assessing the difference in short and long positions of large and small players, it should be borne in mind that a short position in the bitcoin futures market does not necessarily mean that the trader’s forecast for the price of the underlying asset is negative.