Data shows that hedge funds are shorting Ethereum on the CME and starting basis trading operations.

The latest data from the U.S. Commodity Futures Trading Commission (CFTC) shows that hedge funds are shorting Ethereum positions worth $1.73 billion on the Chicago Mercantile Exchange (CME), with leveraged net positions showing a significant short bias. This operation is regarded as a typical basis trading strategy, where traders short $ETH contracts on the CME while buying spot ETFs to achieve Delta neutrality and obtain an annualized return of approximately 9.5%. In addition, if traders choose to buy spot $ETH and stake it, they can also obtain an additional annualized return of approximately 3.5%. However, it is worth noting that the current Ethereum spot ETF does not support staking, so additional returns cannot be achieved. Overall, this type of arbitrage strategy has attracted a lot of institutional attention, given that the total assets under management of spot ETFs are approximately $12.00 billion. (CoinDesk) [Odaily Planet Daily News]