Hedge fund and commodity trading advisors have ramped up their bearish bets on bitcoin futures to record levels, according to a report citing the latest data from the Commodity Futures Trading Commission (CFTC).

At the end of Q1, leveraged funds increased their short positions in the Chicago Mercantile Exchange's (CME) standard bitcoin (BTC) futures contracts to 16,102, marking the highest level seen since the they started trading in late 2017.

With each contract representing BTC5, institutions are reportedly short more than BTC80,000, notionally worth $5.4bn at today’s prices.

This record buildup in short wagers may indicate a strong interest from hedge funds in carry trade opportunities, as investors look to exploit three-month futures premiums of over 10% following bitcoin's recent price decline from peaks above $73,500 in March.