On November 10, the buy-and-hedge Bitcoin strategy earned about $119 per coin, less than the roughly $135 needed to cover financing.
The cash-and-carry approach described by CryptoSlate involves buying BTC while hedging against price declines, so returns don’t depend on the market rising. Based on the example borrowing calculation in the material, the returns still don’t cover 17 days of financing costs, even before other expenses.
· Under this calculation, profitability depends on the difference between hedging returns and borrowing costs.
· The material provides no information about price or cost changes after November 10.
If hedging returns stayed below financing costs over the long term, would you still consider this strategy?
The cash-and-carry approach described by CryptoSlate involves buying BTC while hedging against price declines, so returns don’t depend on the market rising. Based on the example borrowing calculation in the material, the returns still don’t cover 17 days of financing costs, even before other expenses.
· Under this calculation, profitability depends on the difference between hedging returns and borrowing costs.
· The material provides no information about price or cost changes after November 10.
If hedging returns stayed below financing costs over the long term, would you still consider this strategy?
