Leveraged funds double XRP short positions as open interest jumps 40%

CME XRP futures open interest rose by 39.6% in one week, while leveraged funds more than doubled their net short positions to 115.7 million XRP, according to the latest report from the Commodity Futures Trading Commission (CFTC).

The increase in open interest, which measures the total number of outstanding futures contracts, added about 110.3 million XRP to the market. Total exposure now stands at roughly 389.2 million XRP.

This shift occurred as XRP’s price recovered about 32% from $1 earlier in the month, trading near $1.38 at the time of the report.

Sharp split in market positioning

Leveraged funds held 892 long contracts and 3,206 short contracts, resulting in a net short of 2,314 contracts, or about 115.7 million XRP. This marks a significant increase from 57.35 million XRP the previous week.

Meanwhile, dealers and asset managers moved in the opposite direction. Dealers increased their net-long positions by 1,195 contracts (59.75 million XRP), ending at 2,121 contracts net long. Asset managers added 565 net contracts (28.25 million XRP), finishing at 843 contracts net long.

Uncertainty over leveraged fund motives

The CFTC report does not clarify whether the leveraged fund shorts are bearish bets or hedges against other positions. If XRP continues to rise, these funds could face pressure if they maintain or expand their short exposure.

What is confirmed

• CME XRP open interest rose 39.6% in one week, reaching 7,783 futures-equivalent contracts.
• Leveraged funds doubled their net short to 115.7 million XRP.
• Dealers and asset managers increased their net-long positions.
• XRP’s price recovered about 32% from $1, trading near $1.38 at the time of the report.

What is still unclear

It remains unknown whether the leveraged fund shorts are outright bearish bets or hedges against other market positions.

Sources

• CryptoSlate