The market’s reaction to the ETH Spot ETF launch has been muted, with investors waiting to see if it follows the “buy the hype, sell the news” pattern. For comparison, BTC dropped to $38k after its ETF launch highs but broke all-time highs two months later.
US Government and Mt Gox.
- U.S. Government transferred 58.742 BTC to Coinbase this morning, and currently holds a total of 213.239k BTC (~14.2b USD)
- Mt Gox also moved a total of ~47.6k BTC to other wallets, including Bitstamp.
Options Market
- While spot prices remain muted, the options market is painting a different picture. 26 Jul vols made an impressive 8-vol rally with RR dipping by 3 vols signalling caution to the downside.
- The options market seems to be expecting more downside movement in the near term, exacerbated by the US Government and Mt Gox news.
Trade Idea
With the ETH Spot ETF potentially not impacting prices on the outset, coupled with potential selling pressure from the US Government and Mt Gox, prices may remain subdued until momentum builds up leading to the elections.
BTC Principal Protected Range Accrual (USD Principal)
Receive weekly 25% p.a. coupon if BTC is trading between 60k and 74k during observation.
- Maturity: 18-Oct (12 weeks)
- Coupon Rate: 25% p.a. in USD if BTC/USD fixes at-or-within Coupon Range, 0% p.a. otherwise
- Coupon Range: 60k to 74k
- Coupon Frequency: Weekly from 2-Aug BTC Spot Reference: 67,000
BTC Spot Reference: 67,000