#HedgeFundsCMEBitcoinNetShortsFall89%
As of November 3, leveraged funds held a net short position of 12,955 $BTC in CME Group bitcoin standard futures, representing an 89% decline from the peak of 115,985 BTC reached on December 17, 2024, and the lowest level since February 2023. According to Foresight News, Unfolded cited data from the Commodity Futures Trading Commission (CFTC) Commitments of Traders report indicating that hedge funds had largely closed their bitcoin arbitrage positions.
Unfolded noted that arbitrage buying, which had previously driven capital inflows into ETFs, had virtually disappeared. Therefore, inflows into spot ETFs could more accurately reflect directional demand, while structural buying, which may have cushioned price declines, may also have diminished.
As of November 3, leveraged funds held a net short position of 12,955 $BTC in CME Group bitcoin standard futures, representing an 89% decline from the peak of 115,985 BTC reached on December 17, 2024, and the lowest level since February 2023. According to Foresight News, Unfolded cited data from the Commodity Futures Trading Commission (CFTC) Commitments of Traders report indicating that hedge funds had largely closed their bitcoin arbitrage positions.
Unfolded noted that arbitrage buying, which had previously driven capital inflows into ETFs, had virtually disappeared. Therefore, inflows into spot ETFs could more accurately reflect directional demand, while structural buying, which may have cushioned price declines, may also have diminished.