Title Trader Typology and Strategic Allocation in Regulated Bitcoin Futures Abstract Using proprietary CFTC large trader data, we analyze CME Bitcoin futures participants and identify two dominant investor types: concentrated traders (holding mostly Bitcoin) and diversified traders (incorporating Bitcoin within a broad futures portfolio). A market shift toward diversified traders occurs in mid-2020, linking Bitcoin to traditional asset classes via common holdings. Portfolio optimization tests reveal these traders persistently overallocate to Bitcoin relative to Sharpe-maximizing weights, with 2021 data suggesting a theoretical short position. The Micro Bitcoin contract attracts newer, concentrated entrants, yet open interest remains dominated by diversified institutions. Our findings inform market structure and institutional portfolio strategy in cryptocurrency derivatives.