What Does a Market in Contango Typically Imply about the Cost of Carrying the Underlying Asset?

A market in contango (futures price > spot price) typically implies a positive cost of carry. This cost includes expenses like storage, insurance, and the interest cost of financing the asset.

In crypto perpetuals, a premium (positive funding) implies that the market is willing to pay a premium to hold a long position without physical ownership or an expiration date.