Fast Take
Knowledge from The Block reveals that as of Might 2024, hedge funds have taken a notable bearish stance on Bitcoin, holding the most important internet quick positions in CME Micro Bitcoin Futures because the finish of 2021. These micro contracts, every representing 0.1 BTC, cater to merchants in search of exact publicity with decrease capital necessities than commonplace CME Bitcoin Futures, representing 5 BTC per contract.
The chart from The Block signifies that hedge funds have markedly elevated their quick positions in micro contracts, reflecting a cautious or bearish outlook regardless of Bitcoin’s robust year-to-date worth efficiency, which noticed it rise from $40,000 to over $68,000. Hedge funds have been additionally at related quick ranges throughout Bitcoin’s all-time excessive in March. In distinction, different dealer classes, like asset managers and non-reported merchants, keep comparatively steady positions.
The elevated hedge fund shorting in micro futures suggests they’re hedging in opposition to potential draw back dangers, even because the spot market reveals bullish sentiment.
If we have a look at the inverse, hedge funds’ lengthy positions in CME Micro Bitcoin Futures stay comparatively muted in comparison with the degrees throughout Bitcoin’s all-time high in March, in keeping with knowledge from The Block.
Knowledge from Coinglass reveals that the mixture whole open curiosity in CME Bitcoin futures is roughly $11 billion, encompassing each micro and commonplace contracts. CME is the leading exchange for Bitcoin futures buying and selling.
