London and New York Colour

Market attention is currently focused on the potential approval of a spot ETH ETF. While the earliest rumored approval date is July 2nd, we believe the likelihood of approval this week is low.

The Mt Gox release is also slated to happen this week. This overhang of up to 140,000 BTC should continue to weigh on markets, especially since the exact release schedule is unknown right now.

BTC continues to be supported above 60k, and ETH above 3300. However, vols remain low with BTC 1-month ATM trading at the 40 vol handle. We expected the spot-forward basis to compress with the bearish price action but it has surprisingly continued to stay within the 9 – 11% range.

Trade Idea
While the core view remains that crypto continues to range, the lower vol environment with relatively higher basis yields provides some interesting high convexity (think higher upside) plays.

The Enhanced Sharkfin is a good option to participate in a potential crypto breakout to new highs.

BTC ENHANCED SHARKFIN
Maturity: 27SEP24
Max Payout: 54% p.a.
Coupon Rate: 2% p.a. in USD
Strike: 73,000 BTC/USD
Barrier: 85,000 BTC/USD

For a deeper dive into these strategies and insights from our Chief Investment Officer, please refer to our latest quarterly commentary. To initiate a conversation, feel free to contact our sales team at [email protected] .