Core Insights - CME has lost its position as the leading exchange for bitcoin futures open interest, with Binance now holding approximately 125,000 BTC ($11.2 billion) compared to CME's 123,000 BTC ($11 billion) [1] Group 1: Open Interest Trends - CME's open interest started the year at 175,000 BTC but has declined due to reduced profitability in the basis trade, where traders buy spot bitcoin and sell futures [2] - Binance's open interest has remained stable throughout the year, appealing to retail traders betting on price movements [2] Group 2: Historical Context - A year ago, CME's open interest peaked at 200,000 BTC as prices approached $100,000, with an annualized basis rate of around 15%, which has now decreased to approximately 5% [3] - The decline in the basis rate indicates diminishing returns for institutional basis traders [3] Group 3: Market Dynamics - As spot and futures prices converge, arbitrage opportunities are diminishing, impacting CME's previous dominance in bitcoin futures open interest [4] - CME had been the largest exchange since November 2023, driven by institutional positioning ahead of the anticipated launch of spot bitcoin ETFs in January 2024, but this advantage appears to have diminished [4]