  This paper examines the relationship between Inverse Perpetual Swap
contracts, a Bitcoin derivative akin to futures and the margin funding interest
rates levied on BitMEX. This paper proves the Heteroskedastic nature of funding
rates and goes onto establish a causal relationship between the funding rates
and the Bitcoin inverse Perpetual swap contracts based on Granger causality.
The paper further dwells into developing a predictive model for funding rates
using best-fitted GARCH models. Implications of the results are presented, and
funding rates as a predictive tool for gauging the market trend is discussed.
