Exploring Arbitrage Opportunities between the BTC Spot and Futures Market based on Funding Rates Mechanism
- https://doi.org/10.2991/aebmr.k.220307.316How to use a DOI?
- Bitcoin; arbitrage; spot market; futures market
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.
- © 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 -