Big bets on Bitcoin futures seen since Terra’s collapse.

Bitcoin (BTC) futures markets are experiencing a surge in money flows, with traders likely making bets on price movements amid a flurry of crypto exchange-traded fund (ETF) filings.

The total number of unsettled contracts on bitcoin futures, known as open interest, increased to over $11 billion over the weekend, marking its highest level since May last year when the then-behemoth Terra imploded.

Rising open interest indicates that new money is flowing into the market or existing participants are increasing their allocation. This metric can be used to gauge market sentiment and the strength behind price trends.

Coinalyze data shows that open interest has largely hovered at the $8 billion level since late April.

The increase in bitcoin futures trading coincides with a rise in volumes and buying activity on bitcoin options markets, which are mainly used by sophisticated investors to hedge against price swings or take leveraged bets on bitcoin movements.

Some market observers predict that the trend is likely to continue if ETF applications from traditional finance giants such as BlackRock are approved in the coming months.

“Bitcoin’s rally is part of a larger trend signaling a shift towards bitcoin as a distinctly strong and established store of value,” said Alex Adelman, CEO of bitcoin rewards app Lolli, in an email last week.

“The recent burst of bitcoin ETF applications from leading institutions like BlackRock, Fidelity, and Invesco shows that new regulatory guidelines are the green light institutions have been waiting for to launch bitcoin-based products and meet client demand,” Adelman added.

Oliver Knight and Omkar Godbole contributed to the reporting.

Edited by Parikshit Mishra.