The cryptocurrency market is looking to close the trading week on a positive note, with the top 5 crypto assets trading up between 2-5% in early European trade. Bitcoin is on track to reclaim $8k level and immediate FOMO aftermath may see the BTC price squeeze higher towards $9k but momentum + volume needs to increase substantially for it to break through the critical $10k level. Ethereum has been a lot more subdued and trading in the mid-200 region. Interestingly, there has been a pick up in option activity for 14 Jun19 300 call strike, where open interest (OI) stands at 4296. What is even more interesting is that the OI for 28 Jun19 140 put strike stands at a mammoth 10453.
On the subject of Ethereum, which has had its share of criticism, a new $100 million investment firm, Darma Capital, is opening to investors who want to bet that digital assets such as Ether are poised for a 10-year bull run. Specifically, as pointed out by The Block, the fund's flagship product is the so-called DARMA Optimized Long-ETH Fund (DOL-ETH), a long-biased fund that takes contributions in Ether with the aim of outperforming a simple buy-hold position with an active investment strategy. Since launching in late February, the ETH-DOL fund now counts over $100 million in ether under management.
Looking elsewhere, Litecoin (LTC) continues to surge higher as the eagerly awaited block reward halving approaches the D-day. As it stands, 59 days to go and the asset is up 274.53% year-to-date. LTC hash rate is at an all-time high of 374T, as is difficulty, and according to media reports, a new Litecoin miner is soon to become available - Antminer L5. Having rallied so much already, there is a big risk of aggressive pushback, and while the event is not due for another 59 days, a lot of upside has already been baked in so to speak.
Finally, XPR, which has had a less than impressive start to the year, is up 5% following rumors that Ripple has acquired the major US-based money transfer company MoneyGram, both companies refused to comment.
Thank you for reading,
The BeQuant’s Analytics team