"Wall Street may be underestimating a major carry trade forming around bitcoin-linked income products, with early capital movement away from low-yield Fed funds toward higher-yield instruments such as Strategy's Stretch (STRC)."
"Thorne's comparison reflects a classic carry trade structure, where capital shifts out of lower-yielding assets to capture higher returns elsewhere, with Fed funds on one side and bitcoin-linked instruments on the other."
"Strategy's Stretch (STRC) pays a variable 11.50% annual dividend in monthly cash, with a recent price of $99.86 and an effective yield of 11.52%."
A significant carry trade around bitcoin-linked income products is emerging, with capital moving from low-yield Fed funds to higher-yield instruments like Strategy's Stretch (STRC). STRC offers an 11.52% effective yield and monthly cash dividends. The widening gap between traditional risk-free rates and bitcoin-linked yields signals a potential large-scale capital reallocation. Regulatory clarity may further enhance institutional participation and expand alternative yield benchmarks, making this trade resemble the yen carry trade in scale and impact.
Read at news.bitcoin.com
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