Bitcoin reclaimed the $5100 level and, after overcoming a few road bumps, the price shot up into the mid-$5200 level, and the BTC futures curve has since been shifting from backwardation to contango (albeit modestly so). At the same time, Ethereum’s price moved back into the mid $160 area and the contango spread between perpetual rate vs Sep contract has widened to around $5-6. As a reminder, last week the spread was as wide as $15, however a bout of profit taking ahead of the $200 level saw the spread collapse. The price bias remains bullish, and the spread is again expected to widen as the cryptocurrency prices move back towards the key technical level. The delisting of Bitcoin SV (BSV) has not resulted in any major outflows, which in turn should also prove supportive for the crypto price action going forward. As a reminder, Bitcoin was trading around $6,500, while Ethereum was at $200 last year before the Bitcoin Cash hard fork, these levels should serve as a good indication for upcoming price targets. Also, something to be aware of is the upcoming Bitcoin Cash network upgrade, which is scheduled to take place on May 15, 2019.
In other news, Arca Funds, an American institutional-grade investment manager, is seeking regulatory approval to issue digitized securities on blockchain. The company has filed with the SEC to issue its Arca UST Coins — digitized shares that will be authenticated and then recorded in the form of ERC-20 compatible tokens on the Ethereum (ETH) blockchain.
Finally, Big Four professional services firm EY is rolling out free software designed to help corporate clients use the Ethereum blockchain. Ernst & Young’s protocol, internally code-named Nightfall, has been developed over the last year by the consulting firm’s team of over 200 blockchain developers and will be published in May. The protocol was created for such use cases as supply chains, food tracing, transactions between branches of a company and public finance.
Thank you for reading,
The BeQuant’s Analytics team