PANews reported on January 21 that, according to Bloomberg, a key arbitrage trade in the cryptocurrency derivatives market is crumbling. The "cash-and-carry tradePANews reported on January 21 that, according to Bloomberg, a key arbitrage trade in the cryptocurrency derivatives market is crumbling. The "cash-and-carry trade

Bloomberg: Wall Street firms are withdrawing from Bitcoin "buy now, sell now" arbitrage trading.

2026/01/21 21:00

PANews reported on January 21 that, according to Bloomberg, a key arbitrage trade in the cryptocurrency derivatives market is crumbling. The "cash-and-carry trade" strategy, which involved buying spot Bitcoin and selling futures to capture the price difference, has seen its annualized return plummet from approximately 17% a year ago to around 4.7% currently, barely covering funding costs, due to a massive influx of funds causing the spread to narrow sharply.

As arbitrage profits shrink, the value of open interest in Bitcoin futures on the Chicago Mercantile Exchange has fallen sharply from its peak and has been overtaken by Binance. This primarily reflects a strategic retreat by large US accounts such as hedge funds. Market maturity has given institutions more tools to express directional views, thus narrowing price spreads between exchanges and naturally squeezing arbitrage opportunities. Market analysts point out that the era of near-risk-free, high-return strategies may be over, and traders are turning to more complex strategies in decentralized markets. CME Group states that institutional investors are diversifying from Bitcoin to other tokens such as Ethereum.

Market Opportunity
Nowchain Logo
Nowchain Price(NOW)
$0.00076
$0.00076$0.00076
0.00%
USD
Nowchain (NOW) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Ripple (XRP) CEO Brad Garlinghouse Makes Another Statement Regarding the Anticipated US Cryptocurrency Legislation

Ripple (XRP) CEO Brad Garlinghouse Makes Another Statement Regarding the Anticipated US Cryptocurrency Legislation

Ripple CEO Brad Garlinghouse, in his latest statement, once again expressed his support for the cryptocurrency legislation being debated in the US. Continue Reading
Share
Coinstats2026/01/22 05:30
Trump Dismisses Stock Market Dip as Minor While Solana and XRP Stand to Gain

Trump Dismisses Stock Market Dip as Minor While Solana and XRP Stand to Gain

Trump calls stock market dip “peanuts” and predicts big gains for Solana and XRP, despite recent market volatility and geopolitical tensions. President Donald Trump
Share
LiveBitcoinNews2026/01/22 06:00
How to earn from cloud mining: IeByte’s upgraded auto-cloud mining platform unlocks genuine passive earnings

How to earn from cloud mining: IeByte’s upgraded auto-cloud mining platform unlocks genuine passive earnings

The post How to earn from cloud mining: IeByte’s upgraded auto-cloud mining platform unlocks genuine passive earnings appeared on BitcoinEthereumNews.com. contributor Posted: September 17, 2025 As digital assets continue to reshape global finance, cloud mining has become one of the most effective ways for investors to generate stable passive income. Addressing the growing demand for simplicity, security, and profitability, IeByte has officially upgraded its fully automated cloud mining platform, empowering both beginners and experienced investors to earn Bitcoin, Dogecoin, and other mainstream cryptocurrencies without the need for hardware or technical expertise. Why cloud mining in 2025? Traditional crypto mining requires expensive hardware, high electricity costs, and constant maintenance. In 2025, with blockchain networks becoming more competitive, these barriers have grown even higher. Cloud mining solves this by allowing users to lease professional mining power remotely, eliminating the upfront costs and complexity. IeByte stands at the forefront of this transformation, offering investors a transparent and seamless path to daily earnings. IeByte’s upgraded auto-cloud mining platform With its latest upgrade, IeByte introduces: Full Automation: Mining contracts can be activated in just one click, with all processes handled by IeByte’s servers. Enhanced Security: Bank-grade encryption, cold wallets, and real-time monitoring protect every transaction. Scalable Options: From starter packages to high-level investment contracts, investors can choose the plan that matches their goals. Global Reach: Already trusted by users in over 100 countries. Mining contracts for 2025 IeByte offers a wide range of contracts tailored for every investor level. From entry-level plans with daily returns to premium high-yield packages, the platform ensures maximum accessibility. Contract Type Duration Price Daily Reward Total Earnings (Principal + Profit) Starter Contract 1 Day $200 $6 $200 + $6 + $10 bonus Bronze Basic Contract 2 Days $500 $13.5 $500 + $27 Bronze Basic Contract 3 Days $1,200 $36 $1,200 + $108 Silver Advanced Contract 1 Day $5,000 $175 $5,000 + $175 Silver Advanced Contract 2 Days $8,000 $320 $8,000 + $640 Silver…
Share
BitcoinEthereumNews2025/09/17 23:48