ANTHONY WALLACE/AFP/Getty Images)
- The analysts noted prices for shorter-dated Bitcoin futures on the CME exchange are cheaper than longer-date contracts.
- The findings indicate an arbitrage opportunity exists to generate returns higher than the borrowing costs of money.
- The unusual price-action is partly because CME futures are derived from Bitcoin prices on multiple spot exchanges, among which spot prices can still fluctuate significantly.
Analysts from Goldman Sachs have highlighted some unique characteristics to Bitcoin futures contracts which started trading on the CME exchange in December.
“For the majority of bitcoin futures trading since their launch in December, the futures curves have been in steep contango, meaning that near-dated prices are below longer-dated prices,” the analysts said.See the rest of the story at Business Insider
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- Bitcoin is down 45% this year — but that’s not what’s worrying cryptocurrency exchanges
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- South Korea’s defense ministry is taking steps to keep soldiers from getting caught up in the cryptocurrency frenzy
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