Leveraged Funds Rebuild Net Shorts Ahead of Fed Meeting
Leveraged funds, which include hedge funds and other money managers, rebuilt their combined net short position in Bitcoin futures by 1,669 BTC in the week leading up to the Federal Reserve's (Fed) September meeting. According to CFTC data, leveraged funds increased both long and short positions across four regulated Bitcoin futures markets, with CME's standard futures driving 81.5% of the weekly increase in net shorts.
The net short position widened to 39,876 BTC from 38,208 BTC a week earlier, with most of the shift coming from CME's five-BTC contract. Leveraged funds added 888 short contracts and 616 long contracts there, widening the net short by 272 contracts or 1,360 BTC.
The total short exposure outside of the CFTC's spreading category expanded by 4,965 BTC while long exposure rose by 3,296 BTC. The imbalance widened the combined short position, but the simultaneous growth also suggests more complex positioning than a single bearish trade.