Hedge funds have ramped their brief positions on Ethereum, setting a brand new file on the Chicago Mercantile Change (CME).
This surge in brief bets comes regardless of a notable enhance in capital flowing into spot Ethereum exchange-traded funds (ETFs).
Over the previous week, the 9 US spot Ethereum ETFs noticed internet inflows of $420.06 million, considerably outpacing the $204 million inflows recorded by their Bitcoin counterparts.
Nonetheless, the elevated capital didn’t drive ETH’s value increased. As an alternative, the asset stays underneath strain—falling by round 20% previously month to $2,657 as of press time, in keeping with CryptoSlate’s information.
This declining value pattern has raised issues about Ethereum’s short-term outlook.
Market analysts have pointed to a direct correlation between ETH’s weak efficiency and a pointy enhance in hedge fund brief positions. Over the previous week, these positions have spiked greater than 40%, marking a staggering 500% surge since November 2024.
Some analysts additionally famous that the aggressive shorting might be amplifying ETH’s struggles, probably signaling additional draw back dangers.
This has put a highlight on ETH’s rising efficiency hole in comparison with Bitcoin. For the reason that begin of 2024, Bitcoin has outperformed Ethereum by an element of 12, pushing BTC’s market capitalization to 6 instances that of ETH. This degree of dominance has not been seen since 2020.