Approval of Spot Ether ETFs in the US Could Lead to a 60% Surge in Ethereum Price: QCP Capital
QCP Capital, based in Singapore, predicts that the approval of spot Ethereum exchange-traded funds (ETFs) in the United States could result in a significant rally of up to 60% in the price of ETH. This forecast is based on the market reaction to the approval of spot Bitcoin ETFs earlier this year. QCP Capital notes that when spot Bitcoin ETFs were approved in January, Bitcoin’s price surged from $42,000 to over $73,000 within a two-week period.
QCP Capital states that the market is expecting fireworks, with implied volatility above 100% on Friday. The firm also highlights that VanEck’s ETF has been listed by the Depository Trust & Clearing Corporation (DTCC), indicating a high likelihood of approval for spot Ethereum ETFs. Trading for these ETFs is expected to begin as early as next week.
The level of implied volatility in the market suggests strong expectations for significant price movement in response to the potential approval of spot Ethereum ETFs. CryptoQuant, an on-chain analytics firm, reports increased buying activity on both centralized and blockchain-based crypto exchanges. On Tuesday, holders purchased over 100,000 ETH in spot markets, the highest daily level since September 2023. This surge in buying coincides with reports of a favorable decision regarding spot Ether ETFs, leading analysts to increase the odds of approval to over 75%.
However, QCP Capital warns that a “significant price correction” could occur if the ETF application is dismissed. This highlights the market volatility and uncertainty surrounding the approval decision. Six issuers, including BlackRock, have recently filed updated proposals for their ether ETFs, removing plans to stake the token. This suggests that staking activities may have posed regulatory obstacles.
In conclusion, the approval of spot Ether ETFs in the US has the potential to greatly impact the price of Ethereum. If approved, a significant surge is expected, but if denied, a major correction may occur. The market is eagerly anticipating the outcome of the approval decision, with strong buying activity and increased odds of approval indicating a positive sentiment towards spot Ether ETFs.
