Think a Bitcoin cash-and-carry trade is free money? The latest market math says borrowing costs might eat the entire profit. 📉
A November 10 pricing snapshot compared CME’s November futures settlement at $73,805 against Coinbase’s spot close of $73,685.73. That gap offers roughly $119.27 per BTC in gross carry over 17 days—or 3.48% annualized. However, financing that spot purchase at the 3.88% overnight SOFR benchmark costs about $135.01, leaving a $15.74 shortfall before trading fees even apply.
When futures premiums compress below funding rates, institutional arbitrage becomes much harder to justify. Lower cash-and-carry yields can cool hedged institutional demand, leaving spot price action more reliant on directional buyers rather than delta-neutral desks.
While actual desk funding rates and execution spreads vary from benchmark proxies, tight spreads mean delta-neutral players have very little margin for error right now.
Are futures premiums too tight for hedged plays, or are you sticking to directional spot trades? 🤔
#bitcoin #cryptotrading #btcfutures #MarketAnalysis"
$BTC $SOL $NEAR
A November 10 pricing snapshot compared CME’s November futures settlement at $73,805 against Coinbase’s spot close of $73,685.73. That gap offers roughly $119.27 per BTC in gross carry over 17 days—or 3.48% annualized. However, financing that spot purchase at the 3.88% overnight SOFR benchmark costs about $135.01, leaving a $15.74 shortfall before trading fees even apply.
When futures premiums compress below funding rates, institutional arbitrage becomes much harder to justify. Lower cash-and-carry yields can cool hedged institutional demand, leaving spot price action more reliant on directional buyers rather than delta-neutral desks.
While actual desk funding rates and execution spreads vary from benchmark proxies, tight spreads mean delta-neutral players have very little margin for error right now.
Are futures premiums too tight for hedged plays, or are you sticking to directional spot trades? 🤔
#bitcoin #cryptotrading #btcfutures #MarketAnalysis"
$BTC $SOL $NEAR