Coinbase Research Director: The recent claim of "the largest short position in ETH history" is a serious exaggeration

ChainCatcher news, Coinbase's research director David Duong stated that recent claims about the "largest short position in ETH history" are greatly exaggerated.

He pointed out that in June, the net inflow of Ethereum spot ETFs reached $1.16 billion, while the short positions of leveraged funds on CME Ethereum futures increased from $466 million in early May to $1.6 billion on June 24, which is consistent with the inflow of ETF funds.

Duong explained that this phenomenon is mainly driven by basis trading. Since the basis yield of CME Ethereum futures compared to spot has risen from an average of 6% in February to 8%-9% in May and June, it has attracted more institutions to participate in arbitrage by buying spot and selling futures, which does not indicate a pessimistic outlook on ETH.