Asset managers feeling bullish on bitcoin?Asset managers with long exposure in BTC sit at an all-time high of $165m. The net exposure of asset managers is positive for the first time since April, indicating that the institutions have turned bullish on bitcoin.
The open interest from asset managers on CME has been net positive throughout August, with the net exposure currently sitting at $91.6 million, which is the highest long exposure seen among asset managers since January 21st. The asset managers category includes pension funds, endowments, insurance companies, mutual funds, and those portfolio/investment managers whose clients are predominantly institutional. The open interest affiliated with long positions from asset managers has never been higher than its current levels of $165.7 million, suggesting that asset managers have a strong conviction on further upside for bitcoin. Short positions among asset managers currently sit at $74.1m, substantially below its peak of $264m ahead of the May 19th crash. Overall, asset managers were largely net long during the fall of 2020 as the bull market was brewing. As bitcoin surpassed the 2017 highs and started moving upwards with force, short interest accumulated, and asset managers grew more cautious. Prior to the May 19th crash, asset managers were heavily short bitcoin, with a net exposure of $156m towards the short side on May 19th. With asset managers now flipping net positive, it seems like the active institutional investors are feeling bullish on bitcoin.
Source: Skew, The Block (CFTC COT)