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, which involves buying the asset in the spot market and simultaneously selling futures contracts. Carry trades are direction-neutral and profit from an eventual convergence of the two prices. (Futures price converges with the spot price on expiry).
Related posts
-
Bitcoin Pioneer Hal Finney Posthumously Wins New Award Named for Him
The first four awards, including Finney’s, are meant specifically to retroactively reward those who made the... -
Bitcoin halving is ‘buy the news’ event
Bitwise Chief Investment Officer Matt Hougan offered a long-term view on the Bitcoin halving based on... -
Top Crypto Exchange Binance Converts $1,000,000,000 Secure Asset Fund From Bitcoin and BNB to Stablecoin USDC
Binance has converted all of the crypto in its $1 billion emergency insurance fund into the...