Bitcoin (CRYPTO:BTC) futures open interest soared to an all-time high of $36.3 billion, driven by institutional traders utilising the "cash and carry" arbitrage strategy, according to Glassnode's lead analyst, James Check.

This strategy involves shorting Bitcoin futures while buying the equivalent amount in spot ETFs, creating a risk-free yield from the premium difference.

Despite a 21% increase in futures open interest in BTC terms and 100% in USD terms since the start of the year, this arbitrage activity has had minimal impact on Bitcoin's price volatility.

Check notes that significant non-arbitrage demand is needed to spur substantial market movement.