- a 30% annual profit can be achieved by taking long positions on BTC and shorting futures on the CME.
Institutional investors are profiting from the launch of the first BTC ETF in Wall Street. The absence of large players in the new market is allowing for an arbitrage opportunity. Following the first 3 days’ input of an estimated $1.2 billion into the ProShares BTC strategy ETF, it is evident that there is significant demand for the new investment fund.
The price of BTC will be tracked by the future contracts held by the ETF. This has led to a disparity between the price of the future contracts and the price of the actual coins. Various investor are viewing this as an opportunity for some quick and effortless profits. The chart below reveals these disparities;
The Proshares exchange traded fund is connected to the Chicago Mercantile Exchange futures. The fund has to acquire futures to have access to the valuation of BTC whenever there is an inflow of fiat into the BTC ETF. The recent increased demand for the short-term BTC futures has led to a divergence of the futures price and the actual coin price. Traders are profiting from this gap.
According to the co-founder of FRNT, Stephane Ouellette, a 30% annual profit can be achieved by taking long positions on BTC and shorting futures on the CME.