Leverage in the Bitcoin futures market has contracted sharply, with the ratio of futures notional value to spot-market value falling to 0.24x, its lowest level in two years, Crypto Briefing reported. Futures notional value is the combined dollar value of open futures positions, so the lower ratio indicates that leveraged futures exposure has declined relative to the spot market. Bitcoin futures open interest has fallen about 47% to 55% from its peak, while offshore futures activity is down about 97% from the 2021 bull-market high. At CME, which is widely used by institutional investors, Bitcoin futures open interest and trading volume had previously reached their lowest levels in 14 months. Returns from basis trades, which involve buying spot BTC while selling higher-priced futures, have narrowed to about 3% to 5% annually from more than 20% in the past. The reduced returns have diminished the benefits of leveraged futures trading compared with earlier periods.