Core Insights - The gap between spot and futures prices of Bitcoin is narrowing, leading to a significant decrease in institutional basis arbitrage trading through spot Bitcoin ETFs, indicating a structural change in the crypto derivatives market [1] Group 1: Market Dynamics - Bitcoin futures open interest on CME Group has fallen below $10 billion for the first time since 2023, and is now lower than that of Binance [1] - The decline in basis and annualized returns, along with increased trading cost thresholds, has diminished the attractiveness of ETF-futures arbitrage [1] Group 2: Institutional Participation - The changes in the market structure are not indicative of a complete withdrawal of institutional funds from the crypto market [1]

Core Insights - The CME Bitcoin futures main contract fell by 1.51% to $118,000, with a weekly decline of approximately 0.10% [1] - The CME Ethereum futures main contract decreased by 1.31% to $3,725.50, but saw a weekly increase of about 3.70% [1] - Over the past seven days, Bitcoin spot trading fluctuated between slightly below $115,000 and slightly above $120,000, while Ethereum spot prices increased by over 5.80% [1]