How Has the Increasing Institutional Adoption of Cryptocurrencies Affected the Prevalence of Contango?

Increasing institutional adoption has generally reinforced the prevalence of contango in cryptocurrency markets. Institutions often have a long-term, bullish outlook on the asset class, and their participation in the futures market often involves taking long positions, which can push futures prices up relative to the spot price.

Additionally, the growth of regulated futures products, such as those on the CME, has attracted institutional players who are more comfortable with these traditional market structures. The demand for these products, combined with the general long-term optimistic view, has made contango a more persistent feature of the market.