QCP Capital: ETH's liquidity situation relative to BTC has changed fundamentally, and we are bullish on BTC at the end of the year

QCP Capital said in its weekly analysis: 1. ETH's liquidity conditions relative to BTC have fundamentally changed. While BTC is increasingly integrated into mainstream macro capital markets, ETH is increasingly marginalized. This development may be due to investors' apparent lack of interest in ETH spot ETFs relative to BTC spot ETFs. Bitcoin as digital gold is a compelling narrative for investors, while ETH lacks this narrative. This shift in liquidity was very evident on Monday: ETH fell 22% and Bitcoin fell 16%. However, this is not necessarily negative for ETH prices. As a more speculative and volatile asset, its tendency to rise exponentially in price is accompanied by the possibility of greater declines. Before the ETH spot ETF, the difference in implied volatility between BTC and ETH was close to 5%. Now the indicator has expanded to 20%, and may even be higher. The current strategy may be to sell BTC volatility and buy ETH volatility. 2. The bullish BTC is important and structural. This week (despite the large volatility), demand for BTC call options expiring in 2025 continued, with executions approaching 100,000. QCP said that after this week's leverage shock, it is now back on track for a bullish year-end.