Institutional Bitcoin Investors Have Their Own Trading Strategies: Here’s One
Posted On October 24, 2024
The Bitcoin (CRYPTO: BTC) market has seen a notable uptick in futures trading, with open interest reaching an all-time high (ATH) of $32.9 billion, signaling increasing leverage and institutional participation.
What Happened: Glassnode’s weekly report highlights that a significant portion of this surge is being driven by a cash-and-carry strategy, where traders capture yield by holding spot positions while shorting futures contracts.
The cash-and-carry trade, which has gained popularity among institutional investors, is yielding around 9.6%, nearly double the rate offered by short-term U.S. Treasuries.
The CME Group has played a …
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