The crypto cash and carry trade

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esportmania10
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The big, bullish cycle in cryptocurrencies like Bitcoin and Ethereum (and yes, even Dogecoin) is driving up futures premiums, creating opportunity for the "cash and carry" trade.

A staple among hedge fund and institutions, this trade can be placed on exchanges like Kraken, Deribit, Binance, and FTX by going long a cryptocurrency and then short and equal amount of fixed maturity futures (or perpetual futures), earning a "carry yield."

For example, an investor could buy BTC (or ETH) and sell futures against it a few months out. This is a completely hedged trade ("delta neutral"), but currently yields 20-25%+ annualized!

Perhaps a safer way to generate yield in the crypto space than DeFi yield farming?

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Crypto Trading
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