Markets
Ether price could rise 60% after ETF approval: QCP Capital
- Ether price could rise 60% if spot ETFs are approved, QCP Capital wrote.
- The past success of spot bitcoin ETFs serves as an example of potential upside.
- The SEC has hinted that it is ready to approve fund proposals, which could happen in the coming days.
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Ether could be on the verge of a sharp recovery if it is able to mimic the gains driven by ETF approval Bitcoin achieved since January.
All eyes are currently on the second-largest cryptocurrency as US regulators are deciding whether to approve the country’s first ether spot ETFs. According to a Telegram post from crypto trading firm QCP Capitalthis could generate a 60% upside for the crypto token.
With verdict deadlines approaching, the SEC is expected to release its decisions as early as Thursday. Reports The fact that the agency was inclined to approve these filings came as a surprise to markets this week, and ether has soared nearly 22% since Monday.
“With Friday’s implied volatility above 100%, the market is expecting fireworks,” QCP wrote. “BlackRock and five other issuers have amended their ETF registrations with the SEC, and VanEck’s ETF has been listed by [Depository Trust and Clearing Corporation]. We believe approval is now highly likely, with negotiations expected as early as next week.”
QCP referenced the success of the Bitcoin ETF when predicting a 60% rise in Ether. This token’s stellar run began in mid-January when the SEC also gave the green light to bitcoin ETFs. The cryptocurrency has since reached an all-time high of more than $73,000, although it has since pared gains.
As a result, Ether purchases also increased sharply this month: since May 1, CryptoQuant Data shows an 85% jump in Ether purchase volume or the amount of crypto purchased from sellers on an exchange.
Wall Street’s new optimism for another ETF-led crypto push has reinvigorated the bullish outlook for both ether and bitcoin. For example, Standard Chartered confirmed its position that Ether could reach $8,000 by the end of this year, further pushing bitcoin towards a target of $150,000.
What’s more, FX Research head Geoff Kendrick wrote that spot ether ETFs are unlikely to encounter the same problems that have plagued bitcoin, such as strong inflow volatility.