Selling perpetual BTC futures gets really good returns at the moment. Have a look at Kraken’s funding rate. This month, it was over 0.007 %/hr more often than not, and for one exception above 0.
So, an annualized performance of 85% for providing liquidity. I’d at least try it if I had an investment LLC.
Just let me understand. Selling a perpetual BTC Future means that I receive cash right now (used as collateral) and given the future was perpetual; I can technically keep the future as long as I want and just benefit on the future premia.
So the only risk is that i) the Broker goes disfunct or changes the busines model and forces me to buy-back or ii) BTC goes through the roof and I eventually need extremely large collateral?
But fundamentally, thats an interesting proposition… or did I get it wrong? not that good with futures trading.
You would want to cover the short futures with BTC because if the price of BTC goes up, you’ll pay that difference to those who bought the futures. In that way, the price movement will cancel out.
That is, your short futures are long USD and short BTC. Your BTC is, of course, a simple long BTC position. In effect you will be long USD.
Of course, that means you will need to sell some BTC (and also therefore also buy back some futures), if the price of BTC goes up, to cover the price difference paid for your short futures position.
The other way around, that means you should buy some BTC (and also therefore sell some more futures), if the price of BTC goes down, to use the price difference received from your short futures position.
What you will always receive (or pay) is the funding rate, which has been large and positive for this month. A positive funding rate means longs pay shorts. A negative funding rate means shorts pay longs.
I haven’t fully analyzed the actual products. There is of course some friction from trading (brokers need fees, liquidity providers want spread). And of course, as you spotted correctly, there is the chance that something blows up in unexpected ways (products, brokers…).
PS: Ah, yes, the perpetual futures never mature. So you theoretically you can keep your position for ever. No maturation is also the reason why a funding rate is needed. Else there would be no reason for the futures price to have any relation to the underlying.
At what price would you guys consider dumping in a significant amount of money? Below 50k CHF? Below 40k CHF?
I’m no sure it will go that far. I accelerated my buys a bit. don’t know if the dip holds until my bonus arrives end of month.
40k would be great, but imho this will never be seen again.
That would be nice. Putting in another 8k for 0.2 BTC 
Im out of cash 
but buying every week/month at any price
In the past short before halving, similar 10-20% dump happens - smart money buying in. The deeper that goes the better later for the ramp up.
I think I’m going to sell my 2 ETH for 0.12 BTC once it’s possible. Then add some additional cash so I end up with 0.4 BTC. That’s probably the maximum my risk tolerance will allow. If BTC goes to 1 million, great. I’ll reach my FIRE goal 5 years sooner. If the whole thing collapses, I’ll lose 1 year.
Great tradeoff, I should probably do the same and sell my ETH and just buy BTC.
ETH ETFs might be coming soon, you guys might want to reconsider selling your ETH… Read that:
I am definitely HODLing my ETH 
ETH-BTC ytd is +0.52%
I know. Where do you see ETH/BTC at if it gets approved? 0.06-0.07?
@SwissTeslaBull
After I mined my ETH, I could have sold 2 for 0.16 BTC. Now it’s worth 0.11 BTC.
No clue, I make no predictions but from here on the only way is up (of course with dips) until the end of the bull run probably mid-end 2025. Don’t neglect the alt coin season is coming too and personally I also like to diversify with crypto too (not all in in BTC).
Yes but in the case only eth-btc matters. All way up sure, but more or less than btc?
Should have sold ETH at 0.58 BTC xD
Crypto fluctuations are of notoriously very high magnitude. I wouldn’t assess the valuation of any crypto asset based on a few days/weeks fluctuations. Your ETH could be worth 0.6 BTC tomorrow.
