Bitcoin Carry Trade Soars Past Treasury Yields
A new opportunity for institutional investors has emerged in the Bitcoin market, as the carry trade on CME Bitcoin futures reached 7.89% on August 7, exceeding the 4.19% two-year Treasury yield.
This strategy allows traders to purchase spot BTC while simultaneously shorting futures, capturing the premium when the contracts converge toward the underlying price. This structure gives professional investors a way to seek crypto returns while limiting direct exposure to Bitcoin's daily price swings.
US spot Bitcoin ETFs recorded $865 million in net inflows during the week ending August 7, with BlackRock's IBIT attracting about $694 million, or roughly 80% of the total. This combination of ETF demand and elevated futures premiums creates a more mature environment for institutional Bitcoin strategies.