Ethena Expands Arbitrage Strategy to Stock Market

Ethena plans to extend its existing cryptocurrency spot-perpetual contract arbitrage strategy to the stock perpetual contract market. The core logic of this strategy is to hold the spot and sell perpetual contracts to earn funding rates. Previously, the peak of cryptocurrency arbitrage configurations exceeded $8 billion. Ethena believes that, based on the historical penetration rate of cryptocurrency perpetual contracts, the theoretical potential open interest size of stock perpetual contracts could reach approximately $4 trillion, nearly 40 times the peak size of cryptocurrencies. Ethena plans to leverage its existing infrastructure, including hedging execution, over-the-counter settlement, and tiered access, to expand this business. As of August 11, the total market open interest for stock perpetual contracts has reached $6.2 billion. From May 20 to August 11, the annualized funding rates for Hyperliquid and Binance averaged 14% and 17.5%, respectively, while Bitcoin's was only 4.1% during the same period, and the correlation between stock funding rate premiums and cryptocurrency funding rates is close to zero.

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