Coinbase Research Director: Claims of Recent "Largest ETH Short Position in History" are Grossly Exaggerated
Powered by ChatGPTCoinbase's Head of Research, David Duong, stated that recent claims about the "largest $ETH short position in history" are greatly exaggerated.
He pointed out that Ethereum spot ETFs saw net inflows of $1.16 billion in June, while leveraged fund short positions on the Chicago Mercantile Exchange (CME) Ethereum futures increased from $466.00 million in early May to $1.60 billion on June 24, an increase roughly in line with ETF inflows.
Duong explained that this phenomenon is mainly driven by basis trading. Because the basis yield offered by CME Ethereum futures relative to spot has risen from an average of 6% in February to 8%-9% in May and June, it has attracted more institutions to participate in arbitrage by buying spot and selling futures, which does not represent a pessimistic outlook on ETH. [ChainCatcher]