Hedge Funds Go Long on CME Bitcoin Futures as Basis Yields Plummet

Hedge funds trading Bitcoin futures on the Chicago Mercantile Exchange (CME) have shifted from a net short position to a net long stance, according to CryptoQuant CEO Ki Young Ju.

This change reflects a move away from the traditional basis trade strategy, where traders sold futures while buying spot Bitcoin or ETFs to profit from price differences.

The shift is driven by a decline in futures basis yields, now below U.S. Treasury yields, making the old trade less attractive.

Bitcoin's price rebound from around $58,000 to over $65,000 supports this bullish positioning, indicating growing institutional confidence in Bitcoin's upside potential.