Bitcoin Carry Trade Hits 7.89%, Outpacing Treasury Yields as Wall Street Eyes a New Rotation
TL;DR
- Bitcoin futures carry reached 7.89% on August 7, exceeding the 4.19% two-year Treasury yield.
- US spot Bitcoin ETFs attracted $865 million during the week, with BlackRock’s IBIT accounting for roughly 80% of inflows.
- The spread offers institutions another reason to consider Bitcoin-based strategies, although financing, margin requirements, and trading fees can reduce the final return.
Bitcoin carry trade returns have moved above short-term US government yields, giving institutional investors another reason to examine Bitcoin as a source of market-neutral income. On August 7, annualized carry on CME Bitcoin futures ranged from 5.69% to 7.89%, compared with a 4.19% yield on two-year Treasury notes.
The difference matters because the strategy does not depend on Bitcoin rising. Traders can purchase spot BTC while simultaneously shorting futures, capturing the premium when the contracts converge toward the underlying price. That structure gives professional investors a way to seek crypto returns while limiting direct exposure to Bitcoin’s daily price swings.
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