Markets
Ether Price Could Rise 60% After ETF Approval: QCP Capital
- The price of ether could rise 60% if spot ETFs are approved, QCP Capital wrote.
- The previous 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 strong rally if it is able to mimic the gains driven by the ETF approval bitcoin reached since January.
All eyes are currently on the second-largest cryptocurrency as US regulators decide whether to approve the first spot ether ETFs in the country. According to post on Telegram by cryptocurrency trading firm QCP Capitalthis could result in a 60% upside for the crypto token.
As the verdict deadline approaches, the SEC is expected to release its rulings as early as Thursday. Relationships The fact that the agency was inclined to approve these documents came as a surprise to markets this week, and ether is up nearly 22% since Monday.
“With Friday’s implied volatility above 100%, the market is expecting fireworks,” QCP wrote. “BlackRock and five other issuers amended their ETF filings with the SEC, and the VanEck ETF was listed by [Depository Trust and Clearing Corporation]. We believe approval is now very likely, with trading expected as early as next week.”
QCP referenced the Bitcoin ETF’s success in predicting a 60% Ether rally. That token’s stellar run began in mid-January, when the SEC similarly gave the green light to spot bitcoin ETFs. Since then, the apex cryptocurrency has reached an all-time high of over $73,000, although it has since pared gains.
As a result, ether purchases have also increased significantly this month: since May 1st CryptoQuant data shows an 85% increase in ether taker purchasing volume, or the amount of cryptocurrencies purchased by sellers on an exchange.
Wall Street’s newfound optimism for another ETF-led crypto boost has reinvigorated the bullish outlook on both ether and bitcoin. For example, Standard Chartered confirmed his position that Ether could reach $8,000 by the end of this year, pushing bitcoin further towards a target of $150,000.
Additionally, head of FX research Geoff Kendrick wrote that spot ether ETFs are unlikely to run into the same problems that bedevil bitcoin, such as high volatility in inflows.