CME Hedge Funds Turn Net Long Bitcoin Futures for First Time in Years

CME data shows hedge funds have moved to a net-long position in Bitcoin futures for the first time in years, a shift that suggests growing institutional confidence in a directional upside move. CryptoQuant CEO Ki Young Ju described the change as "rare", noting that leveraged funds have historically stayed net short to support the traditional cash-and-carry basis trade. For years, many institutions used the strategy of buying spot Bitcoin or ETFs while shorting CME futures to capture the futures premium. That structure typically keeps positioning net short. The latest figures indicate that pattern has broken, with leveraged funds now net positive around the $65,000 area. The positioning change comes as Bitcoin posted its first weekly close above $65,000 since late July. BTC has rebounded from the Aug. 1 low near $62,235 and was trading around $64,870 at the time of reporting, with the recovery holding so far. A key driver is the shrinking economics of the basis trade. CryptoQuant and other market data show the annualized basis yield has compressed to about 2.08% as of Aug. 8, 2026, down from roughly 20% during the 2021 bull market and 3.8% in February 2026. At these levels, the three-month futures premium no longer outcompetes two-year Treasury yields, while funds still face funding costs, margin requirements, and execution risk. With returns thinning, many participants appear to be reducing the short leg, unwinding arbitrage positions, and taking outright BTC exposure. The shift is also reflected in the Commitments of Traders (COT) report. Large Speculators' positioning has trended higher through June and July and stayed elevated into early August, aligning with the view that major funds are flipping long. Taken together, Bitcoin's weekly close above $65,000 and the move by leveraged funds from a structural short to net long could strengthen the market's bullish signal set, marking a notable change from the multi-year pattern that previously defined CME futures positioning.