A recent study focused on arbitrage trading revealed an intriguing phenomenon – teams aiming to maximize profit using BTC/USDT pairings while hedging with futures are often hampered by traditional margin wallets. 📉 This approach locks capital, limiting portfolio diversification and potential returns. For example, significant funds held in the exchange’s margin wallet restrict opportunities for parallel trades, yield strategies, or even hedging tools outside of the platform. 🔑 The report from the Bank for International Settlements (BIS) on crypto markets underscored this point: liquidity inefficiency is a major challenge for institutional players, impacting capital productivity and overall portfolio efficiency. 📈 This means that every dollar tied up in idle collateral hinders performance, creating an inherent disadvantage for those vying for success in high-frequency trading or multi-strategy environments. The key takeaway: frozen capital equals lost opportunities.