Ethereum Futures See Funding Rates Go Negative as the Merge Draws near
Join Our Telegram channel to stay up to date on breaking news coverage The Merge update is about to arrive to make Ethereum’s transition to Proof-of-Stake complete. But the latest figures tell us that not all the investors are onboard. They are willing to bet against it, with more of such investors taking a short position on Ethereum. It has resulted in Ethereum Futures seeing funding rates go negative, Why do Funding Rates go Negative? Funding rates are payments that investors make periodically in a bid to make the price of the perpetual futures contract close to the index price. These rates have not become negative because the short traders are paying premiums to long traders to keep their position open . It is perhaps the main reason behind Ethereum’s all-time high “open position” of 4.21 million. Negative fundings mean that most are betting the Ethereum price will power after the merge upgrade. Crypto Traders – Negative Funding Rates are Buy...