Crypto asset trading firm QCP Capital has projected that the approval of a spot Ethereum $ETH exchange-traded fund (ETF) could trigger a significant price rally, potentially driving Ethereum's price up by 60% to around $6,000.
Historical Context and Projections
QCP analysts base their optimistic forecast on the precedent set by the approval of spot Bitcoin (BTC) ETFs earlier this year. According to data from crypto.news, Bitcoin saw a remarkable 66% surge from approximately $44,300 to a peak of $73,700 within two months of the ETF's approval in January.
Pending Decisions and Market Sentiment
The U.S. Securities and Exchange Commission (SEC) is poised to decide on Ethereum ETF applications from VanEck and Ark Invest, with decisions expected on Thursday and Friday, respectively. Other notable applicants, such as Invesco, Fidelity, BlackRock, Grayscale, Franklin Templeton, and Bitwise, have also recently updated their filings, indicating a flurry of last-minute activity.
QCP Capital highlighted the heightened market anticipation in their QCP Broadcast, noting, "All eyes are on the ETH ETF deadline later today. With Friday implied volatility above 100%, the market is expecting fireworks." They further added, "VanEck’s ETF has been listed by the DTCC. We think an approval is now highly likely with trading expected as early as next week."
Broader Market Implications
QCP Capital's bullish stance is echoed by research firm Bernstein. Analysts from Bernstein believe that if the Bitcoin ETF approval trend is any indication, Ethereum could experience similar, if not greater, positive price movements due to sustained demand inflows. They pointed out that Ethereum's "free float and supply looks even more attractive than Bitcoin’s," noting the constrained supply due to investors holding onto their ETH and the locking of supply in financial smart contracts.
Current Market Performance
As per CoinMarketCap, Ethereum's price has already seen a notable increase, up 28% over the past week, with trading volume rising by 17%. Currently, Ethereum is trading just below $3,800.
Looking Ahead
The anticipation surrounding the potential approval of Ethereum ETFs is palpable, with market players closely monitoring the SEC's decisions. Should these approvals come through, Ethereum could very well see a substantial price rally, further solidifying its position in the crypto market.
For further details and updates, including the performance of other crypto assets, visit Grayscale unveils crypto trusts for Stacks and Near.
