This is a long shot, but I would REALLY appreciate it if some broker would let me hold bitcoin in my account and use it as collateral against short bitcoin futures, to arb the contango (over 9% APY risk free)
Bitcoin custody for futures abitrage
- Thread starter ScroogeMcDuck
- Start date
If you are not US resident you can with FTX, Binance among others.
or form an entity with others in a non-geoblocked country with the US resident share under 25%
or become tech savvy and truly understand what distributed permission-less tech really means.
there's no rational reason for this much futures contango to coexist with 8% interest on lending spot bitcoin. Who's gonna pay 8% to borrow bitcoin to short it when they could instead get paid 8% to short the futures?
Blockfi and others are offering interest rates over 8% for bitcoin, and paying for it via lending out that bitcoin at an even higher rate.
The market is just being wildly inefficient here, with a 17% gap between spot lending and contango rates. The market is wildly inefficient here. Anyone who pays 8% APY to borrow spot bitcoin is a retard and anyone who pays 9% APY to go long the futures is a retard.
The market is just being wildly inefficient here, with a 17% gap between spot lending and contango rates. The market is wildly inefficient here. Anyone who pays 8% APY to borrow spot bitcoin is a retard and anyone who pays 9% APY to go long the futures is a retard.
BlockFi doesn't offer rates over 8%
Again!
I want you to sit down and think long and hard:
When you are long Bitcoin and short Bitcoin futures, what is your position?
Then come back
Like an oil storage trade except it pays you a lot more and costs you a lot less.
Things that cost next to nothing to store should never have 9% contango in futures.