Foresight News reported that Coinbase's research director David Duong tweeted that the "largest short position in ETH history" is a serious exaggeration. He analyzed that the inflow of funds into Ethereum spot ETFs significantly increased in June, with a net inflow of $1.16 billion. Driven by more institutional participation in basis trading on the Chicago Mercantile Exchange (CME), the inflow of funds into these tools reached an all-time high.
As of June 24, leveraged funds' short positions on Ethereum futures at the Chicago Mercantile Exchange have risen from $466 million at the beginning of May to $1.6 billion, an increase of $1.14 billion, which closely matches the increase in ETF fund inflows. The reason lies in the basis yield offered by Ethereum futures on the Chicago Mercantile Exchange (relative to spot) rising from an average of 6% in February to 8%-9% in May and June, attracting more institutional investors to choose to buy Ethereum spot and sell futures.
