Bitwise’s XRP Carry Trade Shows a 14.57% Implied Yield on Futures Basis

Bitwise disclosed a near‑market‑neutral XRP carry trade that pairs a large spot custody position with a short position in September Coinbase XRP futures. The structure leaves a small residual long exposure while capturing the premium between spot and futures prices.

Trade composition

The Bitwise Crypto Carry Fund (USCC) reported 10,781,438.36 XRP in custody and a short futures quantity of –10,510,000, representing a 97.48% offset. The remaining 271,438.36 XRP constitutes the only direct price exposure.

Premium and implied yield

Spot‑equivalent pricing shows $1.3222 per XRP in custody versus $1.3342 per XRP for the futures short, a 0.91% price gap (≈1.2 cents). Bitwise annualizes this short‑term premium to a 14.57% implied yield, labeling it as the “holding‑level implied yield” if the position were held to maturity.

Risk considerations

• Spot and futures prices can diverge before settlement.
• The fund must maintain custody, margin, and roll costs, which are not detailed in the public methodology.
• The residual long of 271,438 XRP retains directional risk.

Broader market context

CFTC data from August 25 indicated that leveraged funds held 13,822 short contracts and no outright longs in Coinbase XRP futures, aligning with the short bias of Bitwise’s trade. The same data showed dealer and intermediary accounts holding the majority of long contracts.

Bitwise product contrast

Bitwise also runs an XRP ETF that holds 361,995,068.31 XRP in a trust, providing pure spot exposure without a futures hedge. The ETF’s filing describes its objective as tracking the value of the XRP it holds, less expenses.

Overall, the disclosed trade illustrates how a single institutional fund can monetize a modest futures basis while limiting directional exposure, resulting in a reported 14.57% implied annualized return.