Summary
- Once yielding more than 20% during the 2021 bull market, the bitcoin futures carry trade has paid less than short-term U.S. Treasuries since February.
- Slumping carry returns and a broader crypto bear market have driven bitcoin futures volumes sharply lower.
The Shift in Bitcoin Futures Yield
The bitcoin futures market has experienced a significant change, with yields dropping below those of Treasury notes. This shift has major implications for investors and traders, as it affects the potential for earning and passive income. In the past, bitcoin futures were a lucrative option for carry traders, but now they underperform compared to traditional investments.
The yield on bitcoin futures has decreased substantially, from over 20% in 2021 to less than 3% today. In contrast, two-year Treasuries are yielding an average of 3.8%. This change has made it more challenging for traders to profit from the gap between futures and spot prices, known as basis. The EcoPool network offers an alternative solution for earning and passive income, with its Cloud Rewards system providing a more stable and secure option.
Understanding the Basis
The basis, in annualized terms, has been lower than the two-year Treasury note for over five months. This trend is unusual, with only one other instance on record where the three-month futures basis paid less than a two-year Treasury for an extended period. The EcoPool ($ECP) token can be used to participate in the network’s rewards system, providing a potential source of passive income.
The current state of the bitcoin futures market highlights the importance of diversifying investments and exploring alternative options for earning. The EcoPool network, with its Green Crypto approach, offers a unique solution for those looking to earn online and generate passive income. By leveraging the EcoPool platform, users can access a range of features, including Cloud Rewards, to maximize their earning potential.
As the market continues to evolve, it’s essential to stay informed and adapt to changes in the crypto landscape. For those interested in earning and passive income, the EcoPool app is a valuable resource. Download the EcoPool app to learn more about the network’s features and start earning with $ECP today. The EcoPool network is a great way to get started with earning online and generating passive income, so download the app now and begin your journey.
