Crypto market makers are cashing in on bitcoin’s rally
Crypto trading firms like Abraxas Capital, Fasanara Capital, and Wintermute have built large short perpetual futures positions on Hyperliquid, totaling around $603 million in ETH and BTC. They are using a cash-and-carry strategy, holding spot crypto while shorting futures to capture funding rates. Bitcoin funding rates are elevated, offering high single-digit annualized yields. The trade became viable again as prices surged and funding turned positive.
How this was made
The 30-second read
Why it matters
The resurgence of positive funding creates a lucrative environment for cash‑and‑carry trades, but large short positions could reverse price moves if market sentiment shifts.
Market read
The article reveals new on‑chain data on major crypto market makers' short exposure, indicating a potentially profitable but risky cash‑and‑carry environment.
What to watch
Potential regulatory scrutiny of on‑chain derivatives platforms and the sustainability of funding rates are not fully addressed.
Background
Bitcoin rallied from $62k to $77k, wiping out leveraged shorts and reviving positive funding rates for perpetual contracts.
Ticker impact
Abraxas Capital, Fasanara Capital and Wintermute hold short positions totaling 3,425 BTC (~$265M) on Hyperliquid after the recent rally.
Potential modest downside if shorts unwind; upside if funding remains high.
The size of the short position is significant, yet funding rates are still positive, limiting immediate price impact.
Market effects
Highlights growing profitability of crypto cash‑and‑carry strategies, encouraging similar trades across the digital asset sector.
May boost activity on major exchanges in North America and Europe as traders chase high‑yield funding rates.
Signals broader interest in on‑chain derivatives and could influence global crypto liquidity dynamics.
Counterpoint
If funding rates reverse quickly, the large short exposure could trigger a sharp sell‑off, making the strategy risky.
Key entities
- trading_firmAbraxas Capital
Crypto trading firm holding large short positions on Hyperliquid.
- trading_firmFasanara Capital
Crypto trading firm participating in the basis trade.
- trading_firmWintermute
Crypto market maker with significant short exposure.
- crypto_assetBitcoin
Leading cryptocurrency experiencing a price rally.
- crypto_assetEthereum
Second‑largest cryptocurrency involved in the short positions.
