Bitcoin Futures Carry Trades Outpace Treasuries, Fueling $850M Wall Street ETF Surge

Bitcoin futures carry trades have quietly surpassed Treasuries at an annualized rate of 7.89%, driving a Wall Street Bitcoin ETF spree that saw $853.54 million in net inflows during the week ended August 7.

This is according to analyst Marc Baumann, who noted that the crypto spread had trailed the government benchmark for 157 consecutive days.

The basis of the CME's August contract was calculated at 789 basis points on August 7, which is significantly higher than the two-year Treasury yield of 4.19%.

While some may view this as a sign that institutions are buying Bitcoin, Baumann warned against calling the trade 'riskless', noting that it involves financing costs and other risks that can interrupt a position before convergence.