Institutions Eyeing High Yield Through Bitcoin Futures Trading at a "Very Steep Contango," JPMorgan
PMorgan Chase has released its new weekly report on Bitcoin, highlighting its steep futures curve.
The big banks are reportedly eyeing Bitcoins' contango, a situation where the futures price of an asset is higher than the spot price. As Su Zhu, the CEO of Three Arrows Capital, put it, "Bankers coming for that juicy yield."
"As of this writing, the June CME Bitcoin contract offers ~25% annualized slide relative to spot. The richness of futures is even more acute if we broaden our view to include unrelated exchanges, where carry can be as high as 40+%," stated JPM analysts.
