The crypto arbitrage premium remained stable within the 0.8%–0.9% range throughout October, providing the trading desk with consistent trading opportunities and resulting in a strong daily net return performance, with a peak of 0.56% and an average of 0.25% during the month.
During October, the Rand traded steadily within a narrower range against the Dollar, supported by sustained inflows into emerging market assets and an improved domestic inflation outlook. However, volatility persisted around key US economic releases as markets continued to price in further rate adjustments from the Federal Reserve. While the Fed signalled that it remains data-dependent, investors grew more confident that its easing cycle could continue into early 2026. Locally, the South African Reserve Bank maintained a measured stance, leaving the repo rate unchanged at 7%, which continued to anchor the Rand and attract yield-seeking capital.
Looking ahead, the focus will shift toward global inflation data and the final Fed policy meetings of the year. These developments are expected to influence both the Dollar’s trajectory and broader crypto market sentiment, shaping arbitrage conditions as we approach year-end.
With less than two months remaining in 2025, we encourage all clients to utilise their SDA and AIT allowances to maximise their annual limits before they reset on 1 January. Please submit a support ticket if you would like to begin or resume trading.
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