Hedge funds have aggressively reduced their ether (ETH) to $3,000 during their recent rise, and are attempting to harvest by carrying out base trade.
According to data from the block cited CFTC, hedge funds have cut the ether to $1.73 billion at CME, a venue preferred by facility traders. According to X-account ZeroHedge, CME data also shows that the net total of ether leverage is heavily skewed towards the short side.
Ether Rebara Indian Shorts All-in: Record pic.twitter.com/pyudvjdmhw The biggest short
– Zerohedge (@zerohedge) July 13, 2025
Base transactions involve shortening assets at one venue, while also purchasing the remaining delta neutrals from another venue in terms of price action. In this case, traders can secure approximately 9.5% per year by shortening their CME ETH.
Coinglass data shows that on Thursday alone there was a record $421 million worth of influx into ether ETFs. This has been going on since early May.
These short-circuit ETHs can secure additional yields by purchasing a spot ETH and betting it for an additional 3.5% per year. It is worth noting that this option is not possible for Spot ETF buyers as Custody is handled by the ETF provider.
Bitcoin
It was a popular asset for basis traders in 2024, but its yield collapsed in March, with inflows temporarily stalling and price action settling.
