BlockBeats News, November 12th: Since last week's victory of Trump in the U.S. presidential election, Bitcoin has risen by about 25%. With a more crypto-friendly policy, Bitcoin approached the $90,000 mark on Tuesday, driving the spread between Bitcoin futures and spot prices to the highest level since March.
Hedge funds have long tried to profit from this price difference, known as "Basis Trading," by buying Bitcoin in the spot market and selling futures contracts to lock in the difference between the two prices. By doing so, this frenzy may further drive up prices in the futures market.
According to CF Benchmarks' data, the basis on the CME is currently close to 18%, with the basis of Bitcoin futures listed on the exchange exceeding that of other derivative platforms. Thomas Erdösi, CF Benchmarks' Head of Product, stated, "Institutions may now be seeking to arbitrage the spread between futures and spot prices."
