Viewpoint: Market sentiment remains unusually cautious, with a surge in Ethereum leverage demand

According to BlockBeats, on June 11th, despite Bitcoin prices having rebounded to near a historical high of nearly $110000, Vetle Lunde, head of research at K33, pointed out that market sentiment remains unusually cautious and traders generally lack risk appetite. The funding rate indicator shows that the Binance BTC/USDT perpetual contract experienced negative daily funding rates last Friday and Sunday, with a weekly funding rate of only 1.3% annualized, which usually occurs at a local bottom. Historical data shows that Bitcoin will not peak during periods of negative funding rates, and this positioning often indicates further upward trends. At the same time, Ethereum speculators are eager for leverage, and Volatility Shares' 2x leverage ETH ETF is becoming increasingly popular. Since April 8th, the fund has increased its exposure to 305100 ETH, accounting for 18.3% of US ETH ETF holdings and two-thirds of CME ETH open contracts. Kraken's head of derivatives, Alexia Theodorou, added that although funding rates are slightly bullish, the market has not yet formed a clear direction consensus, and the long/short ratio is still far below the January peak. The more favorable attitude of US regulatory agencies towards DeFi may become a structural advantage for ETH in the coming months. （The Block）