Open interest in CME Bitcoin futures has dropped to $8.41 billion, marking a 14-month low. Glassnode analysts attribute this decline to the unwinding of basis trades, where investors previously established long positions via spot ETFs and hedged with futures shorts to capture spreads. The annualized yield from this strategy has fallen from 15%-20% to around 5%, prompting institutions to take profits. Additionally, daily trading volume for CME Bitcoin futures has decreased to below $3 billion. Analysts suggest that institutional demand is shifting towards direct spot holdings, leading to a significant reduction in leverage within the futures market.