Impending Futures-Based Bitcoin ETFs May Boost Cash and Carry Yields

Posted on by American Coins & Gold

Impending Futures-Based Bitcoin ETFs May Boost Cash and Carry Yields
Several bitcoin futures-based exchange-traded funds (ETF) may debut in the U.S. in the coming weeks. These products may revive interest in the famed “cash and carry” arbitrage strategy, which in turn would bring more buying pressure to the spot market.The ETFs would buy bitcoin futures contracts, primarily front-month trading on a regulated venue like the Chicago Mercantile Exchange (CME), in a bid to mimic the cryptocurrency’s price performance instead of purchasing actual coins.Assuming Wall Street embraces these ETFs, the futures premium, or the spread between futures prices and spot prices, would rise significantly, boosting yields from cash and carry strategy,…