Bitcoin Rebound Revives Market Makers’ Cash-and-Carry Trade

Perpetual futures have no expiry, so exchanges use recurring funding payments to keep contract prices aligned with spot markets. When bullish demand dominates, long-position holders typically pay shorts. Bitcoin’s sharp rebound has pushed funding rates firmly positive, reviving cash-and-carry trades that allow market makers to target yield without taking a direct view on the cryptocurrency’s direction.

Multiple crypto market makers have recently bought Bitcoin in the spot market while shorting an equivalent amount of futures or perpetual contracts, limiting exposure to price swings while collecting funding payments. The strategy has expanded to Ether and Solana, contributing to heavier derivatives activity and stronger institutional participation. The report did not identify the firms involved or disclose position sizes, funding-rate levels or exact trade dates.