QCP Capital: The ETH risk reversal indicator has turned to extreme negative values, indicating tense market sentiment

ChainCatcher news, the encrypted market maker QCP Capital pointed out in its latest market report that despite a rebound in the Asian market on Monday morning following Hong Kong's approval of Bitcoin and Ethereum ETFs, the U.S. market has once again seen a comprehensive sell-off of risk assets. BTC has fallen below $63,000 again.

It is noteworthy that the ETH risk reversal indicator has turned to an extreme negative value (-12%) in the near term, indicating tense market sentiment. Additionally, the market is currently in a short gamma position for ETH, which means that the volatility of ETH prices may be amplified.

Furthermore, given the current market tension and uncertainty, QCP recommends deploying high convexity downside risk strategies on ETH, such as shark fin structured products. For example, with a reference price of $3,100, a bullish ETH shark fin can achieve a maximum annualized return of 57% if the ETH price is between $3,500 and $3,900 at expiration; a bearish ETH shark fin can achieve a maximum annualized return of 54% if the ETH price is between $2,500 and $2,800 at expiration. If the ETH price breaks through the above ranges, the principal will be returned 100%.