The spread between Bitcoin spot and futures prices collapses, marking the end of Wall Street's arbitrage era
ChainCatcher reported that a key arbitrage trade in the cryptocurrency derivatives market is unraveling. Wall Street institutions previously employed the "cash-and-carry trade" strategy, buying spot bitcoin and selling futures to capture the price difference. However, as large amounts of capital have poured in, the spread has narrowed sharply, with the annualized yield dropping from around 17% a year ago to about 4.7% now, barely covering funding costs.
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