Coinbase Institutional Research Insights
David Duong, President of Coinbase Institutional Research, addressed recent claims about having “the largest Ethereum (ETH) short position in history”. He emphasized that these assertions do not accurately reflect market conditions.
Duong explained that the data suggesting increased short positions is largely influenced by arbitrage strategies employed by institutional investors. Data from the Chicago Mercantile Exchange (CME) indicates that leveraged funds’ ETH short positions rose from $466 million in early May to $1.6 billion by June 24, a $1.14 billion increase.
This surge is closely aligned with a net inflow of $1.16 billion into spot Ethereum ETFs during the same period. Duong posited that this correlation is no coincidence; the heightened interest in ETH spot ETFs is driven by a growing yield difference on the CME.
In February, the yield difference between spot and futures prices stood at 6% annually. By May and June, this climbed to 8%-9%, presenting a lucrative arbitrage opportunity for investors—buying spot ETH while simultaneously selling futures ETH.
Ultimately, Duong concludes that the increase in CME short positions reflects institutional arbitrage activity rather than negative sentiment towards Ethereum. Thus, labeling it as “the largest short position in history” misrepresents the market reality.
*This is not investment advice.
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VÕ THỊ HUỲNH MAI
21:41 - 06/07/2025
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21:33 - 06/07/2025
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21:30 - 06/07/2025
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21:18 - 06/07/2025
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