<p>Some hedge funders out there appear to have made a stronger bet on the short side of the CME bitcoin futures market over the past week, data from the Commodities Futures Trading Commission shows. </p> <p>As per <a href="https://www.theblockresearch.com/a-look-at-cftc-regulated-and-self-reported-bitcoin-derivative-data-hedge-funds-at-an-all-time-high-in-cftc-net-short-position-this-month-47437">a research report by The Block's Ryan Todd</a>, hedge funds were overwhelmingly short during the week of November 12th compared to the sell-side, asset managers, and other groups. Specifically, net short positioning (Short OI - Long OI) among hedge funds that trade the CME bitcoin product was at an all time high over the last two weeks of COT report prints. </p> <p>Here's the chart:</p> <figure class="graf graf--figure"><img class="graf-image" src="https://cdn-images-1.medium.com/max/1600/0*seKYDJGLxGTpUzku.png" data-image-id="0*seKYDJGLxGTpUzku.png" data-width="2154" data-height="1064" /></figure> <p><img class="aligncenter wp-image-47539 size-full" src="https://www.tbstat.com/wp/uploads/2019/11/cftc-net-short-position-11.19.19.png" alt="" width="1691" height="1033" /></p> <p>To be sure, the data only shows net positioning of <a href="https://www.theblockcrypto.com/daily/32834/as-several-new-entrants-look-to-break-into-bitcoin-futures-market-cme-remains-the-sleeping-giant">CME bitcoin futures</a>; funds could still be exposed to the underlying spot on the long side and using bitcoin futures to hedge out risk.</p> <p>At last check, bitcoin was trading down 19.55% from $8,806 on November 12 at around $7,085 on Sunday. If those funds closed their position, that would have left them with some profits from the dip. </p> <p>The short position, according to Todd, was significant given sentiment throughout the second quarter of 2019. Here's Todd:</p> <p style="padding-left: 40px;">"This is notable as throughout 2Q19, hedge funds have been relatively net neutral, while asset managers and non-reportable traders skew heavily long (&gt;80%); while Other traders have been net short (most likely operating in a dealer/sell-side capacity in making markets?)."</p>