Loader
logologo
Alpha Zone
Analysts
My Reading List
Log in
DeFiGaming & MetaverseInfrastructureMarketsNFTs
QCP Asia Colour
QCP Capital
main

The highly anticipated ETH spot ETF commenced trading last evening, yet the expected market fireworks failed to materialize.

ETH volatility sold off across the term structures, and the premium of ETH to BTC vols on the frontend has finally reversed, with BTC 1-week and 2-week options trading at 1-3 points higher than ETH now.

Net inflows were $107 million on the first day of trading, as compared to $655 million for BTC, largely due to a $484 million outflow from ETHE.

We maintain a positive ETH outlook. BTC’s achievement of an all-time high two months post-ETF launch provides a compelling precedent. Anticipating sustained institutional interest, ETH’s price trajectory may gradually converge with its previous ATH.

Trade Idea

As the dust settles, we anticipate a decline in ETH volatility heading into the weekend. Since it is still at a decent level, we believe implementing an Accumulator strategy might be the best way to capitalize on this slow upward movement.

ETH Accumulator

Buy ETH spot at 10.1% discount (3,100) every week as long as spot is below 3,900.

  • Maturity: 6DEC24 (20 weeks)
  • Strike: 3,100 (-10.1%)
  • Upper Barrier: 3,900 (+13.0%)
  • Observation Frequency: Weekly

Spot ref: 3,450 ETHUSD

You might also like
Article cover
QCP Weekend Brief
Article cover
QCP Asia Colour
Article cover
QCP Asia Colour
Disclosure: The authors of this content and members of Nansen may be participating or invested in some of the protocols or tokens mentioned herein. The foregoing statement acts as a disclosure of potential conflicts of interest and is not a recommendation to purchase or invest in any token or participate in any protocol. Nansen does not recommend any particular course of action in relation to any token or protocol. The content herein is meant purely for educational and informational purposes only and should not be relied upon as financial, investment, legal, tax or any other professional or other advice. None of the content and information herein is presented to induce or to attempt to induce any reader or other person to buy, sell or hold any token or participate in any protocol or enter into, or offer to enter into, any agreement for or with a view to buying or selling any token or participating in any protocol. Statements made herein (including statements of opinion, if any) are wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader or any other person. Readers are strongly urged to exercise caution and have regard to their own personal needs and circumstances before making any decision to buy or sell any token or participate in any protocol. Observations and views expressed herein may be changed by Nansen at any time without notice. Nansen accepts no liability whatsoever for any losses or liabilities arising from the use of or reliance on any of this content.