Arthur Hayes Says Revival in Dollar Borrowing Demand Could Benefit Ethena’s ENA
Minseung Kang
Summary
- Arthur Hayes said dollar borrowing demand is reappearing in the over-the-counter market, calling it a sign that the basis trade is returning.
- He said a rise in arbitrage based on the gap between spot and futures prices could be positive for the Ethena (ENA) ecosystem.
- Hayes added that ENA would benefit in a unique way and still has plenty of upside potential.
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BitMEX co-founder Arthur Hayes said Ethena’s ENA token could benefit as demand to borrow dollars reappears in the over-the-counter market.
In a post on X on Aug. 25, Hayes wrote that OTC brokers had “started reaching out again about borrowing dollars.” Rates are still too low, he said, but the shift is a positive sign that the basis trade is returning.
A basis trade is an arbitrage strategy that seeks to profit from the gap between spot and futures prices. More of that activity could also support the Ethena ecosystem, which can generate returns by capturing that spread.
Hayes added that ENA would benefit in a unique way and still has plenty of upside.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.