Bitcoin Derivatives See Open Interest Spike of $1,000,000,000 In Just 1 hour as Grayscale Wins Legal Battle Against SEC

The open interest in Bitcoin futures and options contracts saw an enormous $1 billion increase within a single hour of trading. Open interest refers to the total number of outstanding derivative contracts that have been opened but not yet settled by closing out the position or letting the contract expire.

In the world of derivatives trading, open interest is a key metric that quantifies the number of active contracts in the market. A sudden spike in open interest, especially one as significant as $1 billion, is not just a random occurrence. It’s a strong indicator of market sentiment and liquidity. High open interest generally suggests that there is a large number of investors willing to either buy or sell at various price levels, thereby creating a more liquid and efficient market.

In this case, the spike followed a positive news event and was accompanied by a surge in Bitcoin’s price above $28,000. These factors collectively point to a bullish sentiment in the market. Traders are likely expecting further upside and are positioning themselves accordingly through derivatives contracts.

Bitcoin volume has also jumped today and was on a similar level on August 17th, when the market crashed.

Source: Santiment – Start using it today

The Catalyst: Grayscale’s Legal Triumph

The colossal spike can be attributed to a landmark legal victory by Grayscale Investments against the United States Securities and Exchange Commission (SEC). The appeals court ruled that the SEC’s decision to reject Grayscale’s Bitcoin ETF application was “arbitrary and capricious.” This ruling has not only overturned the SEC’s previous decision but also breathed new life into Grayscale’s aspirations to convert its over-the-counter Grayscale Bitcoin Trust (GBTC) into a listed Bitcoin exchange-traded fund (ETF).

Trade on US-Banned Exchanges With No KYC 🤫

Tired of missing hot new listings because your favorite exchange is banned in the US? 🇺🇸

With RocketXchange you can finally trade on Kucoin, ByBit and more without registration or KYC! 🙌

Simply connect your wallet to access every coin. No VPN needed.

Seamlessly bridge between EVM, Solana, Cosmos and 100+ chains. Discover the next crypto gem with low fees.

Take your trading to the next level with:

  • Instant access to banned CEXs 🚫
  • No KYC required 🙅‍♂️
  • Trade on your terms – no registration required
  • Maintain full custody – tokens stay in your wallet
  • Access liquidity across leading DEXs and CEXs
  • Bridge assets quickly between any blockchain

Escape CEX limits today with RocketXchange!

Show more +

The Legal Backdrop

Grayscale had initially filed an application to convert its GBTC into a spot ETF, which the SEC rejected on grounds that the products were not “designed to prevent fraudulent and manipulative acts and practices.” Grayscale subsequently sued, and the decision has now been overturned. The court’s ruling has been hailed as a significant win for the crypto industry, given that Grayscale Bitcoin Trust is the largest Bitcoin fund traded over-the-counter, with over $14 billion in assets under management.

Market Implications

The legal win and the subsequent surge in Bitcoin’s price above $28,000 have had a ripple effect on the market. The spike in open interest is a testament to heightened investor confidence.

We recommend eToro

74% of retail CFD accounts lose money.
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy thetrades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of


Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!

We will be happy to hear your thoughts

Leave a reply