Leveraged funds trading CME's Bitcoin futures cut their combined net-bearish position by 5,566.5 BTC-equivalent between July 21 and July 28, according to the CFTC's latest futures-only report. Asset managers moved the opposite way over the same week, trimming their combined net-long position by 2,204.3 BTC-equivalent. The report's own methodology means neither shift confirms a directional bet on Bitcoin.
Leveraged funds trading CME's Bitcoin futures narrowed their combined net-bearish position by 5,566.5 BTC-equivalent between July 21 and July 28, according to the Commodity Futures Trading Commission's latest futures-only report. Asset managers moved the opposite way over the same week, cutting their combined net-long position by 2,204.3 BTC-equivalent. The two groups stayed on opposite sides of the market even after the shift, the CFTC data showed.
Contracts behind the shift
For leveraged funds, the standard Bitcoin futures net improved by 1,076 contracts, equal to 5,380 BTC. The Micro Bitcoin futures net improved by 1,865 contracts, equal to 186.5 BTC. CME sets the standard contract at 5 BTC and the micro at 0.1 BTC. Asset managers moved the other way: their standard-contract net fell by 428 contracts, or 2,140 BTC. Their micro-contract net fell by 643 contracts, or 64.3 BTC. By July 28, leveraged funds held a 33,712.3 BTC net short position. Asset managers held an 11,284.3 BTC net long position.
What the report can't explain
The CFTC classifies traders by their predominant business purpose and says it does not know the specific reason behind each position. A leveraged-fund short can be an outright bearish trade, one leg of a cash-and-carry position, or another hedge. The report cannot distinguish among directional buying, basis activity, expiry positioning, or a mix of the three.
Other signals point the same way
CME's July 30 bulletin showed standard Bitcoin futures settling at $64,775 for July, $65,085 for August, and $65,335 for September. Its open-interest column showed July down 1,942 contracts, August up 1,838, and September up 507, a pattern compatible with expiry rolling or basis activity, though the bulletin arrived two days after the CFTC snapshot and cannot explain the shift between trader classes.
Separately, four sessions through July 28 produced $526.5 million of spot Bitcoin ETF outflows, before a $32.1 million ETF inflow on July 29.
The CFTC figures document a real reduction in leveraged funds' net-bearish exposure. But with asset managers retreating at the same time, the futures-only snapshot does not confirm a broad institutional turn bullish on Bitcoin.
Source: CryptoSlate
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