CME Hedge Funds Go Long on Bitcoin Futures for First Time in Years

CME hedge funds have made a significant shift in their Bitcoin futures positioning by flipping net long for the first time in years. This move is seen as a strong signal of institutional conviction in the cryptocurrency market.

The traditional basis trade, which involves buying spot or ETFs while shorting futures to pocket the premium, has weakened due to falling basis yields. As a result, leveraged funds are now taking on directional exposure to Bitcoin instead.

The shift comes as Bitcoin's weekly close above $65,000 adds a bullish technical signal. CryptoQuant CEO Ki Young Ju noted that this is a rare occurrence, and the CME data shows that leveraged funds have indeed turned net long.