Coinspeaker QCP Capital: No Major Breakout for ETH until S-1 Filings Are Approved
One of the first digital asset trading firms in Singapore, QCP Capital, has stated that the recent surge in the price of Ether (ETH), the native token of the Ethereum blockchain, is not sustainable. Higher prices are not possible until the complete listing and trading of spot ETH exchange-traded funds (ETFs).
In a post on Telegram, a cloud-based instant messaging service, QCP stated that it does not expect ETH to move higher until the spot ETH ETFs witness significant inflows following the approval of S-1 filings by the United States Securities and Exchange Commission (SEC).
As reported earlier, the US securities regulator approved 19b-4 filings from leading asset management firms like VanEck, BlackRock, Grayscale, and Fidelity for spot ETH ETFs. However, the SEC has yet to approve S-1 filings from these firms, an event that could take weeks or months.
QCP noted that ETH rallied from $3,810 to $3,940 as investors in Asia woke up to bullish comments from the former US president and 2024 presidential candidate Donald Trump. The billionaire stated that the United States “must be the leader” in the field of digital assets and not settle for second place, while adding:
“CROOKED JOE BIDEN, ON THE OTHER HAND, THE WORST PRESIDENT IN THE HISTORY OF OUR COUNTRY, WANTS IT TO DIE A SLOW AND PAINFUL DEATH. THAT WILL NEVER HAPPEN WITH ME!”
It is important to note that Polymarket expects Trump’s winning chances to be around 56%, while current president Joe Biden has 37% chances of securing a victory on the US election day scheduled for November 4. Trump also portrayed his love for crypto by recently announcing that he would accept crypto donations for his campaign.
ETH Rally Is Short-Lived
As per the data from CoinMarketCap, the trading volume of ETH rose 62.74% over the past 24 hours, followed by a 2.27% rise in the market capitalization, which stands at $468 billion. Ethereum price as of 8:10 a.m. ET Monday stood at $3,899. Meanwhile, Bitcoin (BTC) saw a 1% decrease in price in the same timeframe and is currently priced at $68,381.
According to QCP, “market participants are expressing their bullishness in ETH rather than BTC, especially with the potential institutional demand once the ETH spot ETF starts trading”. The Singapore-based firm added that it is “structurally positive on ETH” but does not “see a major breakout” until the SEC approves the S-1 filings and the firm gets “some inflow data, which should only be a matter of time.”
Interestingly, QCP believes the $3,000 price level to be a strong support for ETH, as crypto assets have now become a trump card for the upcoming US elections. Further, the potential institutional interest in the spot ETH ETF will keep Ether above this support level, the firm predicted.
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QCP Capital: No Major Breakout for ETH until S-1 Filings Are Approved