Ethena: The Basis Trade Spread for Gold Is Larger Than for BTC and ETH

Odaily reported that Ethena’s official X account published an analysis of the perpetual contract market for gold tokens (PAXG, XAUT). Data shows that over the past twelve months, the average annualized funding rate for PAXG was 5.8%, and for XAUT it was 12.4%, both significantly higher than the average levels for BTC (5.2%) and ETH (4.1%) over the same period. The daily volatility of gold funding rates is higher than that of cryptocurrencies, due to lower market trading volumes. However, funding rates for gold were positive 82% to 89% of the time, broadly consistent with BTC (88%) and ETH (85%).

Furthermore, Ethena stated that the funding rates for gold and cryptocurrencies are almost uncorrelated. When crypto funding rates are compressed, gold funding rates tend to remain stable or rise. Therefore, incorporating gold perpetual contracts into a basis trade portfolio (holding both spot and equal short positions) can enhance yield levels and reduce yield volatility.