Arbitrage Profits in Bitcoin Futures Decline Sharply Amid Market Saturation

A Bloomberg report reveals the decline of the 'cash-and-carry' arbitrage strategy in the Bitcoin derivatives market, with annual returns dropping from 17% to 4.7%. The narrowing spread is attributed to a flood of capital reducing profit margins, making risk-free high returns unlikely. Institutional investors are consequently diversifying toward other cryptocurrencies such as Ethereum.