Hedge Funds Bet Big on Rising Bitcoin Prices Amid ETF Surge
CryptoQuant CEO Ki Young Ju notes that CME Group hedge funds have made a rare move, turning net long on Bitcoin futures. This shift from their traditional carry trades is driven by the substantial inflow of capital into spot ETFs.
The collapse of the traditional carry-trade strategy's logic has led to this change in sentiment. For a long time, institutions profited from basis arbitrage by buying spot Bitcoin and selling futures contracts. However, this market-neutral approach left the futures market with a net short position.
The emergence of a current net-long stance indicates that some funds have discontinued carry trading and shifted to directional bets on rising Bitcoin prices. This move signals growing acceptance of digital assets among institutional investors.