There is a small effect ripple of Archegos Capital 's multibillion dollar fallout on the crypto world, which is reflected in the https bitcoin futures premium on CME. But the crypto market is largely unaffected.
Latest crisis on Wall Street involves rapid risk reduction triggered by business crisis at Archegos Capital, a family office with at least 10 billion dollarsdollars that bet between $ 50 billion and $ 80 billion on leverage, resulting in nearly $ 5 billion in losses for Credit Suisse and the departure this week from his investment - head of bank .
Listen: Corruption, leverage and cheap money: Archegos and the fastest loss of wealth in the history convenient
Chicago-based CME, which offers traditional financial players exposure to bitcoin with its popular futures contract, may have been affected slightly, as shown by its CME futures premium, or the price reflected in the current spot price contracts. This bounty took du lagging behind the equivalent gauge in popular retail exchanges including Binance, Deribit, FTX, and OKEx.
According to a leading crypto investor, the spread may reflect deleveraging on Wall Street.
"We are seeing debt reduction everywhere in the traditional financial space ", Jeff Dorman, director of digital investments. Asset investment firm Arca Funds, said in a telephone interview. "The CME primarily serves your typical large hedge funds, large mutual funds, and the leverage is less than it was due to this crackdown on prime broker leverage. and exchanges "in traditional markets.
On the CME, the annualized premium rate of Bitcoin futures, the spread between the prices of Bitco's long-term futuresin and the current spot ma The market price is on average 8.67%. This compares to a range of 27% to 31% on crypto exchanges, including FTX, Deribit, Binance and OKEx, according to crypto derivatives data provider Skew. Source: Skew
The difference between the bitcoin futures premium on CME and other crypto exchanges has widened since the end of March, when the surface d at Bill Hwang 's Archegos Capital.
Patrick Heusser, senior cryptocurrency trader at Zurich-based Crypto Broker AG, explained that the term premium is sometimes dependent on demand. of leverage of stock traders.
In a bull market like at the moment, "those traders looking for the long term on the effect of leverage are willing to pay the premium, the cost of leverage, "Heusser said. Because "you can't get much effect on the CME, the future premium is not that steep or that big " compared to other platforms.
Find out more: CME will launch Micro Bitcoin Futures in May ensus
Another explanation is that the premium has increased on crypto exchanges since the end of March due to the bullish opinions of bitcoin traders.
There are "probably more confident traders and more leveraged buyers," says Bendik Norheim Schei, head of research at Arcane Research. long positions. "
Traders in crypto-derivatives exchanges "are already in the crypto ecosystem," Dorman said. "It's just a whole different investor base and a completely different leverage base. as much risk as they can. "