Why Record Ethereum Shorts Could Be a Bullish Signal
The post Why Record Ethereum Shorts Could Be a Bullish Signal appeared on BitcoinEthereumNews.com. Record CME Ethereum shorts reflect hedging strategies, not rising bearish sentiment Ethereum holds bullish structure, eyes breakout if $2,630 resistance flips support ETH derivatives market remains strong with $15.2B open interest, led by perpetuals A record level of short positions against Ethereum on the Chicago Mercantile Exchange (CME) has sparked discussion of widespread bearish sentiment, but key market analysts are pushing back, arguing this is a misinterpretation of how sophisticated institutions are engaging with ETH.. Despite a drop of 3.67% in the past 24 hours, Ethereum maintains a solid weekly gain of 3.48%, currently trading at $2,488.16. CME Shorts Are Structural, Not Speculative CME data shows Ethereum short positions climbing steadily since mid-2023, peaking at a net short of -11,154 in mid-2025. At first glance, such figures might suggest widespread bearish sentiment. However, this assumption misses the underlying strategy. According to van de Poppe, institutions are using these shorts as hedges to balance spot ETH exposure through ETFs. These trades, often referred to as “basis trades,” allow institutions to lock in arbitrage yields of 12% to 18% annually. Significantly, the short interest appears to move in near-perfect correlation with ETF inflows. This tight correlation supports the idea that these positions are not speculative. Rather, they are strategic plays designed to capture risk-free returns. Hence, record shorts in this context are not signs of fear, but rather confidence in Ethereum’s long-term viability. The thesis surrounding the largest short position on $ETH isn’t really valid. These are just shorts to cover the spot longs through the ETF on institutions trading the basis trade to generate 12-18% APY on a year. It’s almost 1 to 1 correlated with the inflow on the ETF. pic.twitter.com/gGuQsydvgx — Michaël van de Poppe (@CryptoMichNL) July 3, 2025 On the Charts, Ethereum’s Bullish Structure Is Intact On the…
The post Why Record Ethereum Shorts Could Be a Bullish Signal appeared on BitcoinEthereumNews.com.
Record CME Ethereum shorts reflect hedging strategies, not rising bearish sentiment Ethereum holds bullish structure, eyes breakout if $2,630 resistance flips support ETH derivatives market remains strong with $15.2B open interest, led by perpetuals A record level of short positions against Ethereum on the Chicago Mercantile Exchange (CME) has sparked discussion of widespread bearish sentiment, but key market analysts are pushing back, arguing this is a misinterpretation of how sophisticated institutions are engaging with ETH.. Despite a drop of 3.67% in the past 24 hours, Ethereum maintains a solid weekly gain of 3.48%, currently trading at $2,488.16. CME Shorts Are Structural, Not Speculative CME data shows Ethereum short positions climbing steadily since mid-2023, peaking at a net short of -11,154 in mid-2025. At first glance, such figures might suggest widespread bearish sentiment. However, this assumption misses the underlying strategy. According to van de Poppe, institutions are using these shorts as hedges to balance spot ETH exposure through ETFs. These trades, often referred to as “basis trades,” allow institutions to lock in arbitrage yields of 12% to 18% annually. Significantly, the short interest appears to move in near-perfect correlation with ETF inflows. This tight correlation supports the idea that these positions are not speculative. Rather, they are strategic plays designed to capture risk-free returns. Hence, record shorts in this context are not signs of fear, but rather confidence in Ethereum’s long-term viability. The thesis surrounding the largest short position on $ETH isn’t really valid. These are just shorts to cover the spot longs through the ETF on institutions trading the basis trade to generate 12-18% APY on a year. It’s almost 1 to 1 correlated with the inflow on the ETF. pic.twitter.com/gGuQsydvgx — Michaël van de Poppe (@CryptoMichNL) July 3, 2025 On the Charts, Ethereum’s Bullish Structure Is Intact On the…
What's Your Reaction?
