Bitcoin custody for futures abitrage

This is a long shot, but I would REALLY appreciate it if some broker would let me hold bitcoin in my account and use it as collateral against short bitcoin futures, to arb the contango (over 9% APY risk free)

 

Give it a year, then I'll think you'll start to hear of brokers accepting Bitcoin as collateral.

There's A LOT of money held within Bitcoin and that Bitcoin is just sitting there doing nothing so it makes sense to put it to use.

 

You can do just that. Just not against CME Futures....that would probably take another 5 years.

 

If you are not US resident you can with FTX, Binance among others.

or form an entity with others in a non-geoblocked country with the US resident share under 25%

or become tech savvy and truly understand what distributed permission-less tech really means.

 

there's no rational reason for this much futures contango to coexist with 8% interest on lending spot bitcoin. Who's gonna pay 8% to borrow bitcoin to short it when they could instead get paid 8% to short the futures?

 

are you sure you are paying 8% on Bitcoin? Seems like you don't really know how this market works

 

Blockfi and others are offering interest rates over 8% for bitcoin, and paying for it via lending out that bitcoin at an even higher rate.

The market is just being wildly inefficient here, with a 17% gap between spot lending and contango rates. The market is wildly inefficient here. Anyone who pays 8% APY to borrow spot bitcoin is a retard and anyone who pays 9% APY to go long the futures is a retard.

 

BlockFi doesn't offer rates over 8%

Again!
I want you to sit down and think long and hard:

When you are long Bitcoin and short Bitcoin futures, what is your position?

Then come back

 

Like an oil storage trade except it pays you a lot more and costs you a lot less.

 

Things that cost next to nothing to store should never have 9% contango in futures.