Investors ramped up their bets on ether, the second largest cryptocurrency, on the eve major software upgrade of the Ethereum network expected early Thursday morning.
The cost of holding a short position – betting that the value of ether will fall – in the perpetual futures market has increased prior to the upgrade, a sign that investors are increasingly hedging theirs when updating the network. The so-called funding rate for ether perpetual futures, a type of futures contract with no expiration date, has been negative for more than a month, meaning traders are paying a premium. risk for pessimistic bets.
