I look at the COT report pretty hard in the ag sector, but tonight was the first time it dawned on me that there is COT data for BTC futures. The open interest distribution is quite different than the commodities I usually look at as most of OI is held by the funds and not commercials. I'm not even sure who the commercials would be in BTC. I assume miners would be considered commercials but who else? Have any of you derived an meaning from the BTC COT report?
The futures are cash-settled, I don't know of any bitcoin futures market that settle in "physical" delivery of bitcoins, The funds lock in the yields, which can be pretty high, outside of my area but saw a video about going short spot bitcoin and long futures or short futures and long bitcoin, contango or backwardation The hedge funds like it because btc is a very liquid market that trades 24/7
Watched a Bitcoin University video on YouTube that talked some about the BTC COT report. While watching it I got to wonder about Coinbase futures. Are they represented on the report?
Doubtful. Wouldn’t BTC COT report be for just CME traded products? AFAIK, the volume on CME BTC is low in comparison to other predominantly crypto focused exchanges. The margin requirement is quite high in comparison. Not sure what you could reliably infer from a small segment of the market.