What to know:
- Ah, the hedge funds—those crafty market magicians—have conjured a whopping $1.73 billion short position on ether (ETH) CME contracts, employing a humorous basis trade strategy to ride the coattails of ETH’s rollicking ascent to $3,000.
- In this magical trade, they short ETH futures on CME while eagerly snatching up spot ETFs, securing a dazzling annualized yield of 9.5%! And what do you know, ETH ETFs are basking in a record $421 million inflow in just a single tick of the clock. 🎉
- But wait, there’s more! Traders can boost their returns by staking spot ETH for another 3.5% yield—because why not add some extra seasoning to that financial stew? 😉
As ether (ETH) flutters up to the dazzling heights of $3,000, hedge funds—our fearless financial gladiators—are throwing caution to the wind. They’re diving into a veritable treasure trove of shorting, trying to scoop up that sweet, sweet yield through their audacious basis trade.
A staggering $1.73 billion is shorted on CME, that exclusive playground for those with deep pockets and sharp minds, according to our friends at the Block who manage to extract such juicy details from the CFTC’s treasure chest. The CME’s stats have confirmed that ether leveraged net totals are bending over backwards to show off those shorts, as noted by the ever-watchful eyes at X account zerohedge.
Ether leveraged shorts going all-in: the biggest short on record! Who needs fortune tellers when you’ve got zerohedge?
— zerohedge (@zerohedge) July 13, 2025
Engaging in a basis trade is like juggling flaming swords—shorting an asset on one side while simultaneously buying on another to maintain a delightful delta neutrality. Here, wise traders can pocket around 9.5% per year by shorting ETH on CME while indulging in spot ETFs, which hold approximately $12 billion worth of assets. Who knew trading could be this entertaining?
Just last Thursday, Coinglass reported a record influx of $421 million into ether ETFs, a trend that’s been moonwalking since early May. Pure comedy gold! 🎭
But there’s a cherry atop this financial cake: those hedging their bets by shorting ETH can earn a little extra if they buy spot ETH and stake it—another 3.5% per year—like finding an unexpected prize in your cereal! Just a heads-up, though: this isn’t an option for the ETFs, as custody is handed off to the ETF provider. Talk about a party foul!
Now, let’s not forget the drama of yesteryear! Bitcoin was the darling of basis traders back in 2024, but that yield took a stunning tumble in March, leaving the market floundering like a fish out of water. 🌊
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2025-07-14 14:31