QCP Capital, a trading firm specializing in crypto assets, is anticipating a potential 60% surge in Ethereum’s price, forecasting it to reach around $6,000 if a spot ETF is given the green light.
Drawing inspiration from the performance of spot Bitcoin ETFs that were approved back in January, QCP analysts have observed a 66% increase in Bitcoin’s value, soaring from approximately $44,300 to a peak of $73,700 in the two months following approval.
The Securities and Exchange Commission (SEC) is on the brink of making a crucial decision regarding Ethereum ETF applications from VanEck and Ark Invest, scheduled for Thursday and Friday respectively. Several other contenders, including Invesco, Fidelity, BlackRock, Grayscale, Franklin Templeton, and Bitwise, have made last-minute adjustments to their filings this week.
“All eyes are on the ETH ETF deadline today. With Friday’s implied volatility exceeding 100%, the market is bracing for excitement,” stated the QCP analysts in their broadcast. “VanEck’s ETF has already been listed by the DTCC, leading us to believe that approval is highly probable, with trading expected to commence as soon as next week.”
In a parallel stance, QCP’s optimistic forecast coincides with that of research firm Bernstein. Earlier this week, Bernstein analysts highlighted the sustained demand inflow witnessed by Bitcoin ETFs post-approval, suggesting a similar price trajectory for Ethereum.
“However, Ethereum’s free float and supply appear even more appealing than Bitcoin’s…constrained by committed investors and utility locking supply in financial smart contracts,” remarked the Bernstein analysts.
As per CoinMarketCap, Ethereum’s price has surged by 28% over the course of the week, with trading volume witnessing a 17% increase. Presently, Ethereum is hovering just below the $3,800 mark.
In addition to these developments, Grayscale has recently introduced crypto trusts for Stacks and Near, further signaling a growing interest in the crypto market.