Hedge funds take positions against small traders
The little guys are winning on Bitcoin for now but the big funds are ramping up bets on a Bitcoin fall as it hits $11,200 today.
The WSJ writes about the skew in CFTC reporting data that shows 14% more shorts at the CME among hedge funds and money managers. Other larger traders held more than three times as many shorts as longs.
That's balanced out by traders with fewer than 25 Bitcoin contracts where longs outnumber shorts 4-to-1.
Since the CFTC data, however, Bitcoin has risen to $11,200 from $9000. So score one for the little guy.
Another interesting trend is the rise in activity in Bitcoin futures. They hit a record $515m in average daily volume. That comes as persistent questions dog exchanges and storage remains a challenge. CME Bitcoin futures are cash settled.
A recent analysis from JPMorgan argued that as much as 25% of true bitcoin trading has now moved to the futures market, once wash trading and fake volume is removed.
