Dealers try to benefit from Cash and Carry cryptovettes after the introduction of the ETF

The introduction of the first Bitcoin Exchange Traded Fund of Wall Street has given professional investors the opportunity to achieve juicy profits with a simple bet, which is made possible by the lack of large actors on the young cryptoma market.

The Bitcoin price reached a new record this week when 1.2 billion

But these inflows and the new record price of Bitcoin have also attracted the attention of experienced dealers who want to take advantage of the gap between the price of the coins themselves and that on the appointment markets.

The ProShares ETF is linked to the CME futures: If new money flows into the Bitcoin ETF, the Funds must buy Futures to participate in the Bitcoin price. The futures contracts expire every month, which means that the fund has to "roll" its stocks regularly in the contract of the next month.

The latest demand boost has raised the price of short-term Bitcoin futures and brought it out of balance with the underlying cash market-which creates a gap between the two prices from which trade can benefit.

”[The ETF] rolls the front month contract, so that the contract is pushed up when streams flow into the ETF, which the [Difference Between Futures and Cash Prices],” said Michael Bucella, partner of the New York Hedge Fund Blocktower.

A "simple cash and carrry trade" from the purchase of Bitcoin and the sale of futures that are traded at the Chicago Mercantile Exchange, offers an annualized return of around 30 percent, said Stéphane Ouellette, CEO and co-founder of the Canadian hedge fund and brokers Frt.

In traditional markets, high frequency dealers quickly take up to make such price gaps profitably and the opportunity disappear. However, the lack of large actors in the crypto industry means that only a few are willing to use the additional capital that is necessary to compensate for price differences.

The trade in the CME is more expensive than on other trading areas, since the stock exchange has higher margin requirements.

"As the thesis is for many of the most successful crypto trades, there are not enough experienced Arb players to manage and monitor the spread," said Ouellette, referring to Arbitrage-focused trading strategies that take advantage of price differences between the markets.

The possibility of benefiting from this bet was reinforced by the fact that Bitcoin is traded on a variety of trading places around the world - which means that dealers are available to buy several prices to buy coins on the cash markets.

The knowledge that Proshares rolls its contracts means that retailers assume that they can rely on a constant buyer at the appointment markets to drive the price up.