BY GREG MAGADINI
February 24, 2024
Hey Crypto Traders,
We continue to see beautiful inflows into the Spot ETFs across the board (except for GBTC, which is nearing neutral flows).
So what now?
My strongest thesis going forward revolves around ETH. My guess is that a lot of market participants missed a chunk of the BTC move and now want to buy something that hasn’t “moved” yet.
Everyone is talking about the Bitcoin halving in April, but that’s nothing compared to the active “REDUCTION” in ETH supply already occurring since Sept. 2022.
Combine this ETH “Supply BURN” with dormant STAKED ETH and mix in a SPOT ETF actively putting ETH into cold storage… all of a sudden the supply story for ETH is as bullish as fundamentals can get!
In terms of ∆25 RR-Skew, the April (60-day) expiration has a historically expensive ∆25 Call (This chart has nearly 5-yrs of data). This makes call spreads interesting.
Owning something like (+1)3000-C/(-1)3800-C for about $200, seems appealing.
I will be bringing you more crypto levels, data and news absolutely free every week.
Talk soon,
-Greg Magadini
Greg Magadini
Director of Derivatives, Amberdata
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