{"id":92824,"date":"2020-10-19T22:06:06","date_gmt":"2020-10-19T19:06:06","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/institutional-bitcoin-longs-at-record-high-hedge-funds-short-cme-data\/"},"modified":"2020-10-19T22:06:06","modified_gmt":"2020-10-19T19:06:06","slug":"institutional-bitcoin-longs-at-record-high-hedge-funds-short-cme-data","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/institutional-bitcoin-longs-at-record-high-hedge-funds-short-cme-data\/","title":{"rendered":"# Institutional Bitcoin longs at record-high, hedge funds short \u2014 CME data"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2f82b54c649\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2f82b54c649\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/institutional-bitcoin-longs-at-record-high-hedge-funds-short-cme-data\/#Why_are_hedge_funds_aggressively_shorting_Bitcoin_but_not_institutions\" >Why are hedge funds aggressively shorting Bitcoin but not institutions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/institutional-bitcoin-longs-at-record-high-hedge-funds-short-cme-data\/#Institutions_continue_to_demonstrate_high_demand\" >Institutions continue to demonstrate high demand<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Institutional Bitcoin longs at record-high, hedge funds short \u2014 CME data  <\/strong>&#8221;<\/p>\n<div data-v-5a136f3a=\"\">According to CME, the amount of Bitcoin (BTC) long contracts held by institutions are at an all-time high. Yet, CME\u2019s most recent Commitment of Trader report shows hedge funds are at a record-high for BTC shorts.<\/p>\n<p>There seemingly is a major difference in the perception of Bitcoin\u2019s short to medium-term trend between hedge funds and institutions.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/0db063ff-eb80-4ced-a722-7e80a1ee0d22.png\"\/><figcaption style=\"text-align: center;\"><em>CME Bitcoin futures net open interest. Source: <\/em><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/skewdotcom\/status\/1317279185568735239\"><em>Skew<\/em><\/a><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Why_are_hedge_funds_aggressively_shorting_Bitcoin_but_not_institutions\"><\/span>Why are hedge funds aggressively shorting Bitcoin but not institutions?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Hedge funds typically implement varying strategies to generate returns for investors. Oftentimes, hedge funds will utilize derivatives and employ a more high-risk strategy.<\/p>\n<p>In contrast, institutional investors who are allocating a percentage of their portfolio to Bitcoin likely have a long-term strategy. This means they are not concerned about the short to medium-term performance of BTC.<\/p>\n<p>Some analysts say that hedge funds are likely short on Bitcoin to provide liquidity to institutions longing the top cryptocurrency.<\/p>\n<p>When institutional investors increasingly build up their long positions, there need to be sellers on CME to balance the order book. Mitchell Nicholson, a cryptocurrency analyst, <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/WR_Crypto\/status\/1317282430588391424?s=20\">said<\/a>:<\/p>\n<blockquote><p>\u201cMany HFs are likely shorting CME futures hedged to capture the basis or providing liquidity to the institutions going long.\u201d<\/p><\/blockquote>\n<p>Technically, hedge funds might also be shorting Bitcoin after repeated rejections of a key resistance level. Bitcoin has been unable to break out of the $11,700 to $12,000 resistance range since August.<\/p>\n<p>For over two months, Bitcoin has been mostly ranging between $10,500 to $11,700, struggling to show upside momentum.<\/p>\n<p>After BTC\u2019s recovery from $3,600, hedge funds may be expecting a significant pullback.<\/p>\n<p>A pseudonymous trader known as \u201cBluntz\u201d said that the current technical structure of Bitcoin looks similar to February. In March, BTC dropped to $3,596 on BitMEX in an abrupt capitulation phase.<\/p>\n<p>Whether hedge funds are net short on BTC or providing liquidity to buyers on CME remains unclear based on open interest. Skew <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/skewdotcom\/status\/1317279185568735239\">said<\/a>: <\/p>\n<blockquote><p>\u201cNew CME Commitment Of Trader report just came in for BTC Futures: HFs all-time short. Institutions all-time long. Who&#8217;s wrong?\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Institutions_continue_to_demonstrate_high_demand\"><\/span>Institutions continue to demonstrate high demand<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the growing Bitcoin short positions from hedge funds, institutional investors are continuing to accumulate BTC.<\/p>\n<p>On Oct. 17, Barry Silbert, the CEO of Grayscale, <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/BarrySilbert\/status\/1317205757138534406\">said<\/a> the firm reached all-time high assets under management (AUM) at $6.4 billion. The figure from Grayscale is critical to measure institutional activity because their products mainly tailors institutional investors.<\/p>\n<p>In the U.S., there is not a Bitcoin exchange-traded fund (ETF) <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roved by the U.S. Securities and Exchange Commission (SEC). As such, institutions rely on the Grayscale Bitcoin Trust, which operates more like an exchange-traded product (ETP) to gain exposure to Bitcoin.<\/p>\n<p>Major multi-billion dollar conglomerates that have invested in Bitcoin, such as MicroStrategy and Square, also emphasized their intent to treat BTC as a treasury asset. At least in the short to medium term, these institutions are unlikely to sell their BTC holdings.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"\/><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/institutional-bitcoin-longs-at-record-high-hedge-funds-short-cme-data\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Institutional Bitcoin longs at record-high, hedge funds short \u2014 CME data &#8221; According to CME, the amount of Bitcoin (BTC) long contracts held by institutions are at an all-time high. Yet, CME\u2019s most recent Commitment of Trader report shows hedge funds are at a record-high for BTC shorts. There seemingly is a major difference&#8230;<\/p>\n","protected":false},"author":1,"featured_media":92825,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/862a4277-f8f1-4faf-b77d-540a7409e7ee.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74972,74937,75845,73785],"class_list":["post-92824","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-futures","tag-bitcoin-price","tag-cme","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/92824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=92824"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/92824\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/92825"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=92824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=92824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=92824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}