Cryptocurrency Arbitrage Business Strategy: The High-Yield Era Is Fading

In mid-January 2026, Bloomberg published an in-depth analysis of the current state of the cryptocurrency derivatives market, highlighting the challenges faced by arbitrage trading strategies. According to BlockBeats, the investment method known as “cash and carry trading”—a technique where traders buy Bitcoin on the spot market while selling futures contracts—has become less attractive than before.

Yield Rates Drop Significantly

The massive influx of capital into the derivatives market has considerably narrowed the price gap between spot and futures. Just a year ago, traders could enjoy an annual yield of around 17% from this trading strategy, but now the figure has dropped to 4.7%. The current yield is just enough to cover capital costs, forcing traders who previously relied on the price difference between the two markets to explore new avenues.

Market Volatility Forcing Strategy Changes

Market experts note that the era of high profits with minimal risk is nearly over. This decline has compelled traders to explore more complex trading strategies on decentralized financial platforms. In particular, large investment institutions are beginning to shift their focus, no longer solely concentrating on Bitcoin but also expanding into other tokens like Ethereum to seek new profit opportunities.

The CME group pointed out that this trend reflects the maturity of the cryptocurrency market, as institutional investors diversify their portfolios to adapt to an ever-changing market landscape.