[IMPORTANT] Bloomberg: Bitcoin Cash-and-Carry Arbitrage Narrows as Wall Street Era Ends

The key cash-and-carry arbitrage strategy in Bitcoin derivatives is fading as the price spread between spot and futures narrows sharply. Annualized returns on this trade have dropped from about 17% a year ago to around 4.7%, barely covering funding costs, leading major US hedge funds to exit. Institutional investors are shifting toward diversified strategies including Ethereum and more complex decentralized market tactics, signaling the end of the easy profit era for Bitcoin futures arbitrage.