Exploring Arbitrage Opportunities between the BTC Spot and Futures Market based on Funding Rates Mechanism

DOI

10.2991/aebmr.k.220307.316How to use a DOI?

Keywords

Bitcoin; arbitrage; spot market; futures market

Abstract

Crypto-currency, in nowadays occupies a very important position in the global financial market. Due to the importance of Crypto-currency, research on it has positive and significant meanings for financial purpose. This research examined how investors arbitrage between the BTC spot and futures market based on funding rates mechanism (Binance exchange). Secondary data was collected and testified in order to examine if there is an arbitrage opportunity between BTC spot and future markets. The data analysis tested the existences of arbitrage opportunities, and arbitrage profits were much larger during BTC market crashes than normal period. On the other hand, the risk of this investing is relatively smaller.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Jiahua Zou
PY  - 2022
DA  - 2022/03/26
TI  - Exploring Arbitrage Opportunities between the BTC Spot and Futures Market based on Funding Rates Mechanism
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 1923
EP  - 1928
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.316
DO  - 10.2991/aebmr.k.220307.316
ID  - Zou2022
ER  -