CryptoQuant’s Ki Young Ju Says CME Hedge Funds Turn Net Long Bitcoin Futures, Bet on Rally
Summary
- CryptoQuant CEO Ki Young Ju said CME hedge funds had shifted their Bitcoin futures positions to net long.
- He said the shift to net long was unusual because hedge funds had structurally maintained net-short futures positions.
- He also said the move suggests institutional investors and Wall Street investors are betting on the possibility of a rise in Bitcoin prices.
Forecast Trend Report by Period
Hedge funds trading on the Chicago Mercantile Exchange have turned net long on Bitcoin futures, a sign they are betting on further gains, according to CryptoQuant CEO Ki Young Ju.
Ju wrote in a post on X on Aug. 10 that CME hedge funds had shifted to net-long Bitcoin futures positions.
He described the move as unusual. Hedge funds typically maintain structurally net-short futures positions because they use basis trades to capture the gap between spot and futures prices. That is why the related indicator had stayed in negative territory for years, he wrote.
A basis-trade strategy cannot support a net-long futures position, Ju said. The shift suggests institutional investors are betting on higher Bitcoin prices.
He added that Wall Street “suits” are betting on an upswing.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.