Rumors surrounding the possible approval of ETH have been more intense lately.
By Temitope Olatunji
Edited by Julia Sakovich
Updated
3 mins read
QCP Capital, a Singapore-based crypto trading firm, recently posted on its X handle predicting that the approval of the Ethereum exchange-traded funds (ETFs) could cause the coin price to spike to $5,000.
Rumors surrounding the possible approval of ETH have been more intense lately. A move by the US Securities and Exchange Commission (SEC) ordering exchanges to submit their 19b-4 filing, a document related to the ETH ETF, has made analysts hold positive opinions on the approval. According to Bloomberg analyst Eric Balchunas, the odds surrounding the approval of the ETH ETF have increased from a mere 25% to 75%.
Following this closely, QCP Capital revealed on their X page that if the ETH ETF is approved, it would impact Ethereum, as the coin could spike to $4,000 short-term, and a longer-term ascent to $5,000 could follow later this year. They, however, dropped a bombshell that if the SEC refuses to approve the asset, there could be an ETH dip to as low as $3,000. They stated:
“If not approved, we could expect an ugly move back to $3K.”
The Singapore-based crypto trading firm revealed that the uncertainty surrounding ETH ETF approval had caused high volatility in ETH prices, which they believe presents a potential trading opportunity. They suggested spot futures as a better profit trading option at this moment, as it is currently yielding above 10% for traders.
This recent post was a follow-up on QCP Capital’s previous post concerning the deadline for ETH ETF approval, with VanEck and Ark Invest/21shares being on the 23rd and 24th of May, respectively. In the earlier post on X, they forecast that should the ETH ETF be approved, the coin could even do better than Bitcoin in terms of price action. They said:
“An approval would likely result in ETH outperforming the price action of BTC upon it’s approval.”
Given the resounding lack of interest in the market, the risk is to the topside with a surprise approval catching everyone off guard.
Backing up QCP’s bullish perspective were the words of Anthony Pompliano, an entrepreneur and investor. He opined that the approval of the Ethereum ETF would be a breakthrough for the entire crypto industry. He asserted that approving the ETF means approving the entire crypto industry, which he referred to as the last dam to be broken.
The price of ETH surged in anticipation of potential ETF approval, amassing a 19.9% increase within the last 48 hours. According to Santiment, an on-chain analytics firm, the possible approval has impacted Ethereum and the entire altcoin market, as there has been an explosion in their gains. In the last 24 hours alone, ETH’s market capitalization and trading volume have significantly risen by 17% and 272%, respectively.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor's and master's degrees in linguistics. When not writing, he trades forex and plays video games.
