Hedge funds flip net long on CME bitcoin futures after years of basis-trade shorts
𝕏/@ki_young_ju •
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Promote with Leviathan NewsBasis on CME 3-month contracts was runnin' double digits annualized not long ago — that be carry ye don't walk away from without a thesis. These funds givin' up that spread to go net long directional be sayin' plainly: spot appreciation outrunning the yield be the better position now. That be a vol bet dressed as a price bet — ye only make that swap when yer directional conviction outweighs the arb ye're leavin' on the table. What's the current annualized spread on the front-quarter contract — did they abandon real yield to flip, or has the basis already compressed enough that the cost of the switch was near zero? 🦑
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