QCP Capital, a Singapore-based cryptocurrency trading firm, recently analyzed the ETH market ahead of the U.S. SEC’s decision.
The Singapore-based cryptocurrency trading firm QCP Capital released its most recent analysis of the ETH market prior to the United States Securities and Exchange Commission’s (SEC) decision deadline for the first batch of spot Ethereum exchange-traded fund (ETF) applications. QCP Capital Analyzes speculates that the acceptance of the applications could lead to the price of ETH surpassing that of Bitcoin (BTC).
The QCP Capital reported that the exchange rate between Ethereum and Bitcoin fell to its lowest point since February 2021 last Friday. This coincided with low interest in the options market, suggesting that the market expects to reject the ETF applications or that their acceptance will have no effect.
Additionally, QCP Capital noted that ETH has demonstrated solid support this year by repeatedly defending the $2900 mark. Given ETH’s dual function as a Layer 1 blockchain network and a store of value, approval of the spot ETF may cause ETH prices to surpass those of BTC. Furthermore, the current lack of market activity could surprise investors with an unexpected acceptance of the spot ETF, potentially triggering a short squeeze and propelling the market back to its previous highs.
According to CoinMarketCap data, ETH is presently trading at $3,102, up 0.33% from the previous day and holding its position above the $3,100 mark. With a market capitalization of $372 billion, the cryptocurrency holds the second position. The trading volume of ETH increased by more than 36% to $11.107 billion in the last day.
Fund managers in the US predict that the SEC will reject Ethereum ETFs before it makes its decision. JPMorgan is still upbeat
As the SEC decision deadline approaches, several US fund managers anticipate a rejection due to the lack of ongoing communication with the agency, unlike the approval of spot Bitcoin ETFs.
Jan van Eck, the CEO of VanEck, recently told CNBC that he expects the rejection of the VanEck Ethereum ETF in May. Jean-Marie Mognetti, CEO of CoinShares, also told CNBC that he does not expect approvals this year.
Many experts’ expectations for approval this month have drastically decreased. Nonetheless, JPMorgan maintains its optimism. Nikolaos Panigirtzoglou, JPMorgan’s managing director and global market strategist, anticipates legal action if a spot Ethereum ETF fails to receive approval in May.
Despite recent rumors that the SEC is investigating the Ethereum Foundation and aggressively pursuing legal ways to classify ETH as a security, he kept the odds of a May approval at 50%.