Bitwise Reveals Institutional XRP Carry Trade with Impressive Yield
- Bitwise Crypto Carry Fund (USCC) held 10,781,438.36 XRP in custody and shorted nearly the same amount in Coinbase XRP futures.
- The fund’s structure was matched by quantity at a rate of 97.48%, minimizing exposure to price movements.
- As of September, the futures position had an implied yield of 14.57% annualized, with a premium of approximately $232,776 between spot and futures prices.
- The spread between spot and futures prices was about $0.012 or a premium of roughly 0.91%.
- Bitwise’s XRP ETF reported holding over $531 million worth of XRP as of early September.
This carry trade strategy allows institutions to capitalize on the pricing gap between spot and futures markets while maintaining minimal directional risk in their holdings.
The Bitwise fund’s impressive annualized yield of XRP at **14.57%** highlights how institutional players are leveraging market inefficiencies for profit without significant exposure to price fluctuations.(Source)
