Ethereum Price Could Surge by 60% after Approval of Spot Ether ETFs in the US: QCP Capital
The approval of spot Ethereum exchange-traded funds (ETFs) in the United States could potentially trigger a substantial rally of up to 60% in the price of ETH.
In a recent note, Singapore-based QCP Capital, said it has achieved this forecast by drawing parallels to the market reaction following the approval of spot Bitcoin ETFs earlier this year.
QCP Capital pointed out that when spot bitcoin ETFs were approved in January, Bitcoin experienced a significant surge from $42,000 to over $73,000 within a two-week period after the ETFs began trading.
“With Friday implied volatility above 100%, the market is expecting fireworks,” QCP Capital stated.
The firm also mentioned that VanEck’s ETF had been listed by the Depository Trust & Clearing Corporation (DTCC), further indicating that approval for spot ether ETFs was highly likely, with trading expected to commence as early as next week.
The measure of implied volatility reflects the market’s anticipation of future price fluctuations for a financial instrument.
QCP Capital’s statement suggests that the current level of implied volatility in the market indicates strong expectations for significant price movement in response to the potential approval of spot ether ETFs.
CryptoQuant, an on-chain analytics firm, reported increased buying activity on both centralized and blockchain-based crypto exchanges in a Wednesday report.
On Tuesday, holders purchased over 100,000 ETH in spot markets, marking the highest daily level since September 2023.
The surge in buying coincided with reports of a favorable decision regarding spot Ether ETFs, leading some analysts to increase the odds of approval to over 75%, up from the earlier estimate of 25%.
Furthermore, open interest in ether-tracked futures
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