Big crypto firms seem to be using the recent market move in a different way.
Some large trading firms are holding big ETH and BTC short positions while also holding spot assets. This is part of a strategy called cash and carry.
The idea is simple. They hold the actual crypto while taking a short position at the same time. This helps reduce exposure to price moves. Their main goal is to earn from funding payments when the market is paying shorts.
Funding rates have picked up again after staying weak for months. BTC funding has also moved back into positive territory.
This shows that trading firms are finding ways to earn from market conditions without making a simple bet on whether prices will go up or down.
Still the market can change quickly. Higher funding can also mean more leverage is building up.
For now the key point is that positive funding has made this strategy attractive again.
$NVDAB $DOT $SOL
Some large trading firms are holding big ETH and BTC short positions while also holding spot assets. This is part of a strategy called cash and carry.
The idea is simple. They hold the actual crypto while taking a short position at the same time. This helps reduce exposure to price moves. Their main goal is to earn from funding payments when the market is paying shorts.
Funding rates have picked up again after staying weak for months. BTC funding has also moved back into positive territory.
This shows that trading firms are finding ways to earn from market conditions without making a simple bet on whether prices will go up or down.
Still the market can change quickly. Higher funding can also mean more leverage is building up.
For now the key point is that positive funding has made this strategy attractive again.
$NVDAB $DOT $SOL
