It is predicted that investors might focus their shift to ETH after BTC ETF approval because the ETH ETF is yet to be approved and is still months away as compared to the BTC ETF which is said to be approved before 10th January 2024. It might as well boost the ETH price and follow an upward movement in the Ethereum chart.
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Investors may shift focus to ETH after BTC ETF approval
In a recent update shared on their Telegram channel, QCP Capital, a trading firm, has provided key insights into the highly anticipated BTC Spot ETF.
According to the report, the United States Securities and Exchange Commission (SEC) might greenlight one or more pending applications for BTC spot ETFs in under three weeks.
QCP suggests a potential announcement either at the close of the market on January 5 or between January 8 and 10, 2024.
Cash-only versus in-kind debate
A crucial development leading up to the launch is the resolution of the “cash only” versus “in-kind” debate. Virtually all ETF providers have acquiesced to the SEC’s “cash only” requirement, resolving the final hurdle in the approval process.
As the launch date nears, QCP Capital emphasizes a scenario where the initial demand for the BTC Spot ETF may not meet market expectations.
This anticipation sets the stage for a possible “sell the news” situation in the second week of January, with analysts predicting topside resistance for BTC in the 45–48.5k range. A retracement to 36k levels is predicted before the restarting of the uptrend.
Ongoing Upward Trends
Despite the expected short-term correction, QCP Capital expresses confidence in the ongoing upward trend. For existing BTC positions, QCP Capital suggests a strategic move of selling covered calls to capitalize on increased forwards and volumes.
Additionally, buying out-of-the-money puts is recommended by QCP Capital to effectively navigate the post-ETF dip. QCP Capital advises monitoring Ether (ETH) as a potential alternative.
With market anticipation potentially shifting towards an ETH spot ETF in the future, a trend of transitioning from BTC to ETH could emerge. The ETH/BTC cross is highlighted for its robust support at the 0.051 level, enhancing the appeal of Ether as a strategic investment.
While QCP Capital believes an ETH spot ETF is still months away, it anticipates that recent BTC spot ETF applicants may swiftly apply for an ETH spot ETF. QCP Capital notes that such headline excitement could generate speculative momentum for ETH prices, irrespective of its immediate viability.
Conclusion
To conclude, QCP predicts the focus shift to ETH after BTC ETF approval because ETH is considered a valuable asset alongside Bitcoin. ETH ETF is also in line for approval in comparison to the BTC ETF which is predicted to get approved soon. If the focus is shifted to Ethereum, it might trigger an upward movement for ETH prices.
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