Hedge funds trading Bitcoin futures on the Chicago Mercantile Exchange (CME) have shifted to a net long position for the first time in years, according to CryptoQuant CEO Ki Young Ju. The move marks a rare reversal after a prolonged period of predominantly net short exposure among leveraged funds.
The change was driven by a collapse in the attractiveness of the so-called basis trade, where funds sold futures while buying spot Bitcoin or ETFs to capture the premium. With three-month Bitcoin futures yields falling to about 3% — below the roughly 3.8% yield on two-year U.S. Treasury bonds — the strategy lost its edge, prompting many to unwind shorts and go net long.
Bitcoin currently trades above $65,000, recovering from a July 1 low near $58,000. The positioning shift is seen as a potential bullish signal for institutional sentiment, though analysts caution that futures data alone does not guarantee sustained upward price action. Market participants will watch whether this trend persists alongside ETF flows, on-chain metrics, and macro conditions.
