Research Summary
The report discusses the current state of Bitcoin (BTC) and Ethereum (ETH) in the context of recent developments. The report highlights the stability of BTC, fortified by the narrative of a potential Bitcoin ETF by Blackrock. The ETF speculation is helping BTC maintain a steady position, trading above 30k. The report also discusses the decline in implied and realized volatility for both BTC and ETH. The term structure for both is reverting back into contango, buoyed by low realization. The report also notes that the volatility spread is returning to more neutral levels.
Actionable Insights
- Bitcoin’s stability is being fortified by the narrative of a potential Bitcoin ETF by Blackrock. This development has sparked renewed interest in BTC and is helping it maintain a steady position, trading above 30k.
- Implied and realized volatility for both Bitcoin and Ethereum has seen a decline. This indicates that markets are, on average, moving about 1.6% per day.
- The term structure for both Bitcoin and Ethereum is reverting back into contango. This is being driven by low realization, which encourages gamma sellers.
- The volatility spread is returning to more neutral levels. This comes after Bitcoin’s dominating run this year, and it seems that it may not be Ethereum’s moment to shine just yet.
