The cryptocurrency market is currently suffering from fundamental mispricing, according to Jonah Van Bourg, head of trading at cryptocurrency trading firm Cumberland.
In traditional finance, sufficient capital exists to pre-hedge almost any type of announcement or well-known expected information, but this is not the case in the cryptocurrency space. The best trade in cryptocurrency is to go long GBTC.
However, Bourg acknowledged that it all hinges on the SEC’s hopes of approving a spot bitcoin ETF, which is not yet fully priced in. Not enough money can go into the cryptocurrency space to pre-position the gains from BlackRock ETF approval.