When assessing the 30-day change in aggregate open interest, we observe that the magnitude of fluctuations has been accelerating. Throughout the 2023 calendar year, changes in open interest remained relatively muted, however, following the introduction of US Spot ETFs in January 2024, these fluctuations began to intensify.
This growing volatility in open interest signals a broader market transition, from one primarily driven by spot activity, to a more derivatives-led structure. Such a shift increases the risk of cascading liquidations and contributes to a more unstable and reflexive market environment.
