Arbitrage and yield-generating strategies are reshaping Bitcoin trading, offering lucrative opportunities in the landscape.
According to Aly Madhavji, founder of Blockchain Founders Fund, execution — not just vision — is what separates real innovators from the noise.
"Ideas are cheap, right? Everyone’s got ideas, but execution’s really what matters," Madhavji said on a panel discussion with Roundtable host Rob Nelson.
Highlighting the work of Robbie Greenfield, CEO of Umoja Labs, Madhavji pointed to the company's innovative approach to Bitcoin yield generation.
"He's got an incredible background building successes over his career. But I think you pair that with what he’s been doing on Umoja, and I think it’s very impressive. He’s come out to market now with this YBTC product. He’s getting pretty incredible traction and it’s proving out,” Madhavji added.
Bitcoin arbitrage has become one of the most viable trading opportunities, leveraging inefficiencies across centralized and decentralized exchanges. Greenfield noted that funding fee arbitrage remains a highly profitable strategy, particularly in bullish market conditions.
"You have derivative markets on centralized exchanges, on decentralized exchanges, and they want to make sure that their markets are trading evenly, right, in terms of shorts and longs. And they’ll pay a funding fee if they see shorts are really down," Greenfield explained. "Exploiting the differences in the funding fees between these different exchanges earns you very good yields, especially in bull markets. If you’re using a delta-neutral strategy, which leverages funding fee arbitrage to a certain extent, that can earn you wise upwards of 10% to 15%."
Madhavji noted that the impact of companies like Umoja Labs is being recognized by some of the biggest players in the industry.
"He's got some of the world's best investors now coming to his door and backing them like Coinbase. And I think that’s very important to see and recognize. He’s really helping to transform the industry by bringing yield to Bitcoin and solving some of the biggest challenges that traders in this space are actually encountering
