🇺🇸📊 #BTC Bloomberg: Key arbitrage strategy in the cryptocurrency derivatives market is falling apart.
The "buy spot, sell futures" strategy, where Wall Street institutions bought BTC on the spot market and sold them on the futures market to profit from price differences, has faced a sharp reduction in spreads due to an influx of large volumes of funds.
Annual returns have decreased from around 17% a year ago to approximately 4.7% currently, barely covering the cost of capital. This mainly reflects the strategic withdrawal of large American accounts, such as hedge funds.
The maturation of the market has given institutions more tools to express directional views, resulting in narrower spreads between exchanges, naturally squeezing the arbitrage space. According to market participants, the era of almost risk-free high returns may have come to an end.
The "buy spot, sell futures" strategy, where Wall Street institutions bought BTC on the spot market and sold them on the futures market to profit from price differences, has faced a sharp reduction in spreads due to an influx of large volumes of funds.
Annual returns have decreased from around 17% a year ago to approximately 4.7% currently, barely covering the cost of capital. This mainly reflects the strategic withdrawal of large American accounts, such as hedge funds.
The maturation of the market has given institutions more tools to express directional views, resulting in narrower spreads between exchanges, naturally squeezing the arbitrage space. According to market participants, the era of almost risk-free high returns may have come to an end.
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📊 Bitpanda to launch stock and ETF trading as crypto exchanges pivot to full-stack financial apps #etf link
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🇪🇺📈 According to CoinGate, Bitcoin led crypto payments in 2025 with a 22.1% share, followed by USDT at 16.6% and Litecoin. TRX rose to 11.5% and ETH to 10.6%. The Bitcoin Lightning Network was the most used payment network, and Europe accounted for the largest crypto payment volume globally. link
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📊 Former FTX US President Brett Harrison’s Architect expands crypto-style perpetual futures into AI compute markets. link
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📊 TradeWars EU Postpones Vote on Ratification of Trade Agreement With the US
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💰 AllianceDAO Co-Founder Wang Qiao stated in a podcast that crypto tokens currently hold little appeal for him. He only holds Bitcoin and a small amount of other tokens; his stock-to-Bitcoin ratio is approximately 50/50. His largest investment is Google, and he also holds Tencent stock. link
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📊 According to Stablewatch data, at least 59 new stablecoins launched in 2025, falling into four categories:
16 U.S. Treasury-backed (e.g., Ripple’s RLUSD, WLFI’s USD1)
22 crypto-backed (e.g., USDf, DUSD)
16 non-USD stablecoins (e.g., DEURO, JPYC)
5 others. #stablecoin link
16 U.S. Treasury-backed (e.g., Ripple’s RLUSD, WLFI’s USD1)
22 crypto-backed (e.g., USDf, DUSD)
16 non-USD stablecoins (e.g., DEURO, JPYC)
5 others. #stablecoin link
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🧑💻 Solana activity jumps as Claude Code virality fuels a new token launch frenzy - link
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⚠️ CSX and A16Z Lead Cork’s $5.5 Million Seed Round to Make RWA Risk Tradable - The Block #rwa
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🗽 Trump hopes to sign crypto market structure bill ‘very soon’ amid growing tensions over stablecoin rewards - #stablecoin link
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🔮 White House advisor on cryptocurrencies and AI David Sachs stated that once new legislation on market structure is passed, the American banking sector will widely adopt cryptocurrencies, especially stablecoins. He predicts that the boundaries between the banking and crypto industries will disappear, merging into a single "digital asset industry." #stablecoin
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📊 VerifiedX launched Butterfly, a crypto payment app that enables Bitcoin and USD stablecoin transfers with a flat $0.01 fee and no limits. The app offers instant global payments and a pre-settlement “callback” feature. It integrates Blockdaemon for yield options and partners with Banxa, MoonPay, Cryptocom, and Stripe for fiat on/off-ramps, with beta launching on January 21, 2026. #stablecoin link
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