I noticed an interesting trend in the market — Bitcoin price formation is gradually coming under the control of traditional financial venues. Previously, cryptocurrency was positioned as an antithesis to Wall Street, but now everything is changing in the opposite direction.

It all started with the emergence of spot ETFs for Bitcoin. Now, institutional investors have a convenient way to enter the asset without having to deal with crypto exchanges. But this is just the beginning. Derivative instruments — options and futures based on these ETFs — are beginning to compete with spot trading volumes, and sometimes even surpass them.

CME Group is becoming a center of attraction. Currently, this platform leads in open interest in regulated BTC futures. Its contracts handle most of the hedging related to US spot ETFs. But the main change is still ahead — CME plans to launch 24/7 trading of crypto derivatives. This will eliminate the last significant advantage of crypto exchanges.

Why is this important? Previously, trading on CME paused on weekends, creating so-called “CME gaps.” Offshore exchanges continued to operate, and arbitrage windows appeared between prices. Institutions were forced to either use ETFs or avoid positions on weekends. 24/7 trading will close these gaps and make regulated markets the standard for large allocators.

Carl Naim from XBTO explains it simply: traditional hedge funds and asset managers prefer to trade instruments they understand, without needing to change technology or trading signals. Why take counterparty risk on an unverified organization if there is a regulated alternative?

This reflects a deeper shift in how capital flows into Bitcoin. Once, it was a bottom-up movement — retail traders seeking an alternative to Wall Street. Now, institutional players are in charge. Sovereign funds, large investors — they choose what they are familiar with. And speculation is no longer just about a single crypto asset, but about a macroeconomic instrument evaluated alongside stocks and commodities.

Naim also noted the irony of the situation: Bitcoin was entirely about decentralization, but as institutional capital grows, the infrastructure around the asset becomes increasingly centralized. Liquidity is consolidating within regulated clearinghouses.

What’s happening to the price? BTC remains above $74 000 amid a return of global risk appetite. Asian indices and the S&P 500 are recovering losses related to geopolitical tensions. Inflows into US spot Bitcoin ETFs remain strong — total volume has exceeded $56 billion.

In this new paradigm, Bitcoin behaves less like a cryptocurrency asset and more like a financial instrument driven by the same forces that move traditional markets. This means that the short-term trend more often reflects global risk sentiment rather than intraday fluctuations within the crypto community.