Price Prediction
Bitcoin Hedged Trade Borrowing Costs
A November 10 snapshot of a Bitcoin hedged trade showed a Bitcoin price of about $119 per BTC, with illustrative borrowing costs of $135 over 17 days. The strategy, known as cash-and-carry, seeks to earn the premium between Bitcoin and CME futures prices, but requires financing at a cost. The comparison implies a gross annualized carry of about 3.48%, against a 3.88% overnight financing benchmark.