Ethena announced plans to extend its crypto spot-perpetual arbitrage strategy to stock perpetual futures markets. The strategy, which involves holding spot positions while selling perpetuals to earn funding rates, previously peaked at over $8 billion in crypto allocations. Ethena estimates the theoretical open interest potential for stock perpetuals at roughly $4 trillion — nearly 40 times the crypto peak. As of August 11, stock perpetual open interest stood at $6.2 billion, with Hyperliquid and Binance annualized funding rates averaging 14% and 17.5% respectively between May 20 and August 11, versus just 4.1% for bitcoin over the same stretch.
Ethena said on social media it plans to extend its crypto arbitrage playbook — holding spot assets while shorting perpetual futures to collect funding rates — into the stock perpetual market.
The strategy's peak allocation in crypto exceeded $8 billion, according to the firm.
Ethena argues that, based on the historical penetration rate of crypto perpetuals, the theoretical potential open interest for stock perpetuals could reach roughly $4 trillion — nearly 40 times the size of the crypto peak. The firm intends to leverage its existing infrastructure, including hedging execution, over-the-counter settlement, and tiered access, to build out the business.
Data from Ethena shows that stock perpetual open interest across the market stood at $6.2 billion as of August 11. Between May 20 and August 11, Hyperliquid and Binance posted average annualized funding rates of 14% and 17.5%, respectively, compared with just 4.1% for bitcoin over the same period. The funding rate premium on stock perpetuals shows near-zero correlation with crypto funding rates, the firm added.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
