QCP Asia Colour - 16 May 24

- US CPI numbers triggered a break out of the range across risk assets. BTC has since traded back above 66k.
- ⁠We expect bullish momentum here that could take us back to the highs of 74k.
- The desk saw sizeable buyers of 100-120k BTC Calls for Dec 2024 on this move higher in spot.
- Institutional demand for the BTC continues to grow with large asset managers Millennium and Schonfeld investing approximately 3% and 2% of their AUM into the BTC spot ETF.
- The stars seems to be aligning on this breakout with significant sovereign and institutional adoption, abating inflation and upcoming US elections. Is this the resumption of the bull market?

Trade ideas:
If this is indeed the start of the bull trend again, then this move could take us past all-time highs. Bullish ERKO Seagulls will allow you to capture upside on such a move at zero cost.
(BTC Spot Ref: 66,000)

1. June Seagull
Expiry: 27-Jun
Strikes: Sell 60k Put + Buy 70k Call (88k Knock-out)
Cost: ZERO
Max payout: $18,000 per BTC or 249% pa if BTC spot price is just under 88k at expiry.
[Downside]: At expiry, if BTC spot price is under 60k level, USD deployed is converted to BTC at 60k price.

2. August Seagull
Expiry: 30-Aug
Strikes: Sell 58k Put + Buy 70k Call (100k Knock-out)
Cost: ZERO
Max payout: $30,000 per BTC or 176% pa if BTC spot price is just under 100k at expiry.
[Downside]: At expiry, if BTC spot price is under 58k level, USD deployed is converted to BTC at 58k price.