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Data shows that hedge funds shorted Ethereum on CME and began basis arbitrage operations

By: odaily.com|2025/07/14 19:21:35
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Odaily News The latest data from the U.S. Commodity Futures Trading Commission (CFTC) shows that hedge funds are shorting Ethereum positions worth a total of US$1.73 billion on the Chicago Mercantile Exchange (CME), and leveraged net positions show a significant short bias.
This operation is considered a typical basis arbitrage strategy, where traders buy spot ETFs while shorting ETH contracts on CME to achieve Delta neutrality and obtain an annualized return of about 9.5%. In addition, if traders choose to buy spot ETH and pledge it, they can also obtain an additional annualized return of about 3.5%.
However, it is worth noting that the current Ethereum spot ETF does not support the staking function and cannot realize additional income. Overall, this type of arbitrage strategy has attracted a lot of institutional attention in the context of the total assets under management of spot ETFs reaching approximately US$12 billion. (CoinDesk)

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