Can any of you explain to me why the spread is so large in bitcoin futures vs spot? Blah blah blah counterparty risk or whatevs but even the CME futures look like an arbitrage opportunity. Is the margin call risk /really/ that high?
The honest to god truth probably has to do with market fragmentation for spot, funding the spot leg of a carry trade would require you to spin up one or more new exchange relationships and imo it's too far outside the mandate of most asset managers to borrow
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To bother** not borrow lol, but also you would have to hold decent amounts of capital at each exchange to guarantee best ex on spot legs, v capital intensive without a true prime broker
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this is the best answer I’ve seen in the replies; while a no-brainer, the trade is capital intensive with barriers to entry that, ironically, favor the retail punter (with a vpn)
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