How Do the Costs of Carry for Bitcoin and Ethereum Compare?

The costs of carry for Bitcoin and Ethereum are broadly similar but can differ based on a few factors. Both have costs related to security and custody.

However, the opportunity cost can differ based on the perceived investment potential of each asset. For example, if Ethereum is expected to have a higher growth rate due to developments in its ecosystem, the opportunity cost of holding Bitcoin instead could be higher, and vice versa.

Additionally, with the introduction of staking on Ethereum, the ability to earn a yield on staked ETH can be seen as a negative cost of carry, or a benefit of holding, which can influence its futures pricing relative to Bitcoin.