Bitcoin Funding Rate Falls Below SOFR at 2.9%, Basis Trading Attraction Narrows Since February

According to BIT analysis, on June 30, Bitcoin's annualized funding rate dropped to 2.9%, falling below the 3.7% SOFR rate. The negative spread marks a shift since February 2026, indicating weakening returns for spot-futures basis trading strategies.

Traditionally, crypto hedge funds execute this strategy by buying spot Bitcoin and selling futures to capture the price differential. After accounting for SOFR-based financing costs, unlevered strategies historically generated 5–10% annualized returns; however, declining retail participation in futures markets has compressed the premium. This trend traces back to February 2025, when retail engagement began declining.