Hedge funds are employing a basis arbitrage strategy involving shorting Ethereum, aiming for a 9.5% annualized yield through this approach despite staking limitations.
The CFTC reports that hedge funds have shorted $1.73 billion worth of Ethereum at the CME, utilizing a basis arbitrage strategy that targets an annualized return of 9.5%. This strategy involves shorting ETH while purchasing spot ETFs, although staking options are unavailable for Ethereum spot ETF buyers.