PANews reported on July 5 that David Duong, head of research at Coinbase Institutional, analyzed in a post on platform X that the so-called 'largest short position in ETH history' is actually greatly exaggerated. The ETH spot ETF saw strong growth in June, with net inflows reaching 1.16 billion USD, an unprecedented surge in the history of such products, mainly due to more institutions participating in CME arbitrage trading (basis trade).
In CME's ETH futures, the short positions of leveraged funds rose from 466 million USD in early May to 1.6 billion USD on June 24, an increase of 1.14 billion USD—coincidentally, this is very close to the net inflow scale of spot ETFs. This is because the annualized basis yield of ETH futures relative to spot has risen from an average of 6% in February this year to 8%-9% in May and June, attracting more institutional investors to engage in arbitrage trading by buying spot and selling futures.
