QCP London / New York Colour – 6 Mar 24

– Last night saw the much anticipated washout with mass liquidations in the highly leveraged perps.
(BTC traded to 59,224 low and ETH to 3,205 low)
– But the bounce has been extremely impressive, particularly in ETH which continued to new highs today.
(3,897.20 high so far)
– With some of the leverage taken out, the path higher has now opened up and we look to a near-term break higher as the uptrend resumes immediately.
– Surprisingly, while perp funding is relatively lower (around 50% level), the rest of the forward curve is higher which makes the spot-forward spread trade even more attractive than before the overnight washout!

Trade Idea:
BTC 100K JUN Principal-Protected Digi (PPD)
This is a principal-protected strategy in USD that will pay out a 5% ann. yield on expiry at 28 Jun.
Additionally, if BTC spot price is above 100k at expiry, the payout is 65% ann.
For example, a $1m deployment would earn $203,013.70 if BTC expired above 100K and $15,616.44 if BTC expired below.
(spot ref: 66,800)