Data shows that hedge funds shorted Ethereum on CME and began basis arbitrage operations

Odaily Planet Daily News The latest data from the U.S. Commodity Futures Trading Commission (CFTC) shows that hedge funds are shorting Ethereum positions with a total value of US$1.73 billion on the Chicago Mercantile Exchange (CME), and leveraged net positions show a significant short position tendency. This operation is regarded as a typical basis arbitrage strategy, that is, traders buy spot ETFs while shorting ETH contracts on CME to achieve Delta neutrality and obtain an annualized return of about 9.5%. In addition, if traders choose to buy spot ETH and pledge it, they can also obtain an additional annualized return of about 3.5%. However, it is worth noting that the Ethereum spot ETF currently does not support the pledge function and cannot achieve additional income. Overall, this type of arbitrage strategy has attracted a lot of institutional attention against the background of the total assets under management of spot ETFs reaching about US$12 billion. (CoinDesk)