In today’s briefing:
- Crypto Moves #32 – Exploring the U.S.-based Bitcoin ETFs Basis Trade
Crypto Moves #32 – Exploring the U.S.-based Bitcoin ETFs Basis Trade
- On Monday’s Crypto Crisp, we briefly discussed the Bitcoin basis trade, a strategy in futures markets that exploits the difference between an asset’s spot price and its futures price, known as the ‘basis.’
- Since this strategy involves taking both long and short positions of similar size, it is considered market-neutral, meaning it does not by default impact the asset’s price.
- Given its market-neutral nature, one might wonder why the Bitcoin basis trade is worth discussing.