Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

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

Authors
Jiahua Zouelmo_chaw@hotmail.com
Jiahua Zou, China Mobile International Limited
Corresponding Author
Available Online 26 March 2022.
DOI
https://doi.org/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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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.220307.316How to use a DOI?
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.

Cite this article

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  - https://doi.org/10.2991/aebmr.k.220307.316
ID  - Zou2022
ER  -