Singapore-based cryptocurrency trading firm QCP Capital released its latest analysis of the ETH market ahead of the United States Securities and Exchange Commission’s (SEC) decision deadline for the first batch of spot Ethereum exchange-traded-fund (ETF) applications, with VanEck’s is scheduled for May 23rd, and Ark Invest/21Shares’ is slated for May 24th. The analysts suggest that ETH prices may outperform Bitcoin (BTC) if the applications are approved.
The company noted that last Friday, the ETH to BTC exchange rate reached its lowest level since February 2021. This was accompanied by low interest in the options market, indicating that the market anticipates either rejections of the ETF applications or that their approval will have little impact.
QCP Capital also observed that ETH has consistently defended the $2900 level multiple times this year, establishing strong support. Due to ETH’s dual role as both a store of value and a Layer 1 blockchain network, the approval of its spot ETF could lead to ETH prices outperforming BTC. Moreover, the current lack of interest in the market suggests that an unexpected approval of the spot ETF could catch investors by surprise, potentially triggering a short squeeze and enabling the market to quickly return to its recent highs.
ETH is currently trading at $3,102, reflecting a 0.33% increase and maintaining its position above the $3,100 level over the past 24 hours, according to CoinMarketCap data. It is ranked second among cryptocurrencies, with a market capitalization of $372 billion. In the last 24 hours, the trading volume of ETH was $11.107 billion, marking an increase of over 36%.
United States Fund Managers Predict Rejection Of Ethereum ETFs Ahead of SEC Decision. JPMorgan Remains Optimistic
As the SEC decision deadline approaches, several United States fund managers have shared their opinions, anticipating a rejection due to the lack of active dialogue with the SEC, unlike before the approval of spot Bitcoin ETFs. VanEck CEO Jan van Eck recently told CNBC that he expects the VanEck Ethereum ETF to be rejected in May. Similarly, CoinShares CEO Jean-Marie Mognetti told CNBC that he does not anticipate approvals this year.
Expectations for approval this month have significantly declined among many analysts. However, JPMorgan remains optimistic. Nikolaos Panigirtzoglou, managing director and global market strategist at JPMorgan, believes that if a spot Ethereum ETF is not approved in May, a litigation process will likely follow. He maintained the odds of a May approval at 50%, despite recent reports indicating that the SEC is investigating the Ethereum Foundation and is actively pursuing legal avenues to classify ETH as a security.
The post ETH Price Could Outperform BTC If SEC Approves Spot Ethereum ETFs This Week, Says QCP Capital appeared first on Metaverse Post.