Hedge funds have amassed a record number of short positions in ether (ETH) futures on the Chicago Mercantile Exchange (CME). While this could indicate a belief in a price drop, experts have stated that carry trades or arbitrage plays are the primary drivers behind these positions. Hedge funds are shorting CME futures while simultaneously buying spot ether ETFs listed in the US, profiting from price discrepancies between the two markets. This has resulted in a significant increase in short interest in ETH futures. However, some of these short futures trades may represent outright bearish bets on the cryptocurrency. It is suggested that traders are shorting ether futures as a hedge against long bets in the altcoin market. Overall, there is a lingering downside fear in ether, as reflected in ETH options showing a bias for put options expiring in the near-term, but pricier calls for long-end options, indicating bullish long-term expectations.



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