Bloomberg: Wall Street firms are withdrawing from Bitcoin "buy now, sell now" arbitrage trading.

A key arbitrage trade in the cryptocurrency derivatives market is crumbling. The "cash-and-carry trade" strategy, where Wall Street firms buy spot Bitcoin and sell futures to capture the price difference, has seen its annualized yield plummet from around 17% a year ago to around 4.7% currently, barely covering funding costs, due to a massive influx of funds causing the spread to narrow sharply.