Major Firms Seek Income Rather Than Direction in Bitcoin Rally: Holding $603 Million in Positions
Major trading firms are seeking funding income through balanced positions instead of betting on price direction during the Bitcoin rally, while increasing leverage heightens the risk of a market pullback.
As the Bitcoin price surged from around $62,000 to over $77,000 in a short period, major trading firms turned to balancing spot assets with short futures positions rather than predicting a rise or fall. On-chain and derivative market data cited by CoinDesk showed that this strategy has become attractive once again.
Short positions on Hyperliquid by Abraxas Capital, Fasanara Capital, and Wintermute reached a total of approximately $338 million in Ethereum (ETH) and $265 million in Bitcoin (BTC). These positions are based on firms balancing their spot holdings with offsetting futures positions to reduce exposure to price movements.
Funding income has risen again
During bullish periods, long investors in futures markets make regular payments to those holding short positions on the opposite side. Positive funding rates turn these payments into a significant income opportunity for large-cap firms.
Bitcoin’s 30-day annualized average funding rate rose to 6.7%, while its 7-day average reached 8.7%. Rates had mostly trended low or negative between February and July. Glassnode data revealed that funding returned to significantly positive territory along with the surge in August.
Abraxas Capital also withdrew 73,872 ETH, worth approximately $173 million, from Binance over the last four days. While these transfers indicate the firm is managing its spot assets alongside its futures positions, they are not viewed as a directional buy decision on their own.
Open interest in the futures markets also grew. Open interest in Bitcoin futures on the CME rose from 87,000 BTC to 122,000 BTC, while open interest in Ethereum perpetual futures reached $14 billion. As leveraged long positions become crowded, a sharp pullback could occur if price momentum stalls.