Bitcoin's latest price crash has narrowed the gap between futures and spot prices, denting the appeal of carry trades.
Annualized three-month futures premium on exchanges like Binance, OKX, and Deribit has dropped significantly due to the spot price decline.
Institutions find the classic cash and carry strategy less profitable as futures on the Chicago Mercantile Exchange trade in line with spot prices.
The cash and carry strategy was popular when futures traded at over 20% premium, but now it's comparable to the return on the 10-year U.S. Treasury note.
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