David Duong: CME Leveraged Shorts Surge Due to Arbitrage Trading, Not "Largest ETH Short in History"

Coinbase's Head of Institutional Research, David Duong, pointed out that despite claims of the "largest $ETH short in history" in the market, it is actually institutional participation in CME basis trading. Net inflows into $ETH spot ETFs in June were $1.16 billion, which is highly consistent with the change in the size of CME leveraged short positions from $466.00 million to $1.6 billion during the same period. As the CME $ETH futures basis yield rose from 6% in February to 8–9% in May and June, it attracted institutions to obtain arbitrage profits by buying spot and selling futures. [Wu Shuo]