QCP Capital: No Major Breakout for ETH until S-1 Filings Are Approved

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As a seasoned crypto investor with a keen eye on market trends and regulatory developments, I share QCP Capital’s cautious outlook on the recent ETH rally. While it’s exciting to see bullish sentiments around digital assets, especially from high-profile figures like Donald Trump, I believe it is essential to be grounded in reality.

QCP Capital, a leading digital asset trading firm based in Singapore, has expressed doubt over the current upward trend in Ether’s (ETH) price. According to their assessment, the surge is not likely to continue until Ethereum-based spot ETFs are officially listed and made available for trading on recognized exchanges.

On Telegram, QCP expressed that they believe Ethereum will remain at its current level until there is a notable increase in investments in ETH-based exchange-traded funds (ETFs) after the SEC’s approval of their S-1 applications in the United States.

I’ve previously shared news about the Securities and Exchange Commission (SEC) granting approval for 19b-4 filings from notable asset management companies such as VanEck, BlackRock, Grayscale, and Fidelity, allowing them to list spot Ethereum exchange-traded funds (ETFs). Nevertheless, an important step remains: the SEC’s review of their S-1 filings. This process could potentially span several weeks or even months.

As a researcher studying market trends, I observed that ETH experienced a significant price increase from $3,810 to $3,940. This surge was likely fueled by investors in Asia who were encouraged by bullish comments made by Donald Trump, the former US president and 2024 presidential candidate. Trump expressed his belief that the United States should take the lead in the digital asset sector rather than settling for a secondary role.

“CROOKED JOE BIDEN, ON THE OTHER HAND, THE WORST PRESIDENT IN THE HISTORY OF OUR COUNTRY, WANTS IT TO DIE A SLOW AND PAINFUL DEATH. THAT WILL NEVER HAPPEN WITH ME!”

Polymarket predicts that Trump has approximately a 56% probability of winning the upcoming US election on November 4th, while Biden’s chances stand at around 37%. Trump has recently expressed his support for cryptocurrencies by announcing that he will accept digital donations for his campaign.

ETH Rally Is Short-Lived

According to CoinMarketCap’s data, Ethereum (ETH) experienced a significant surge in trading volume by approximately 62.74% within the last 24 hours. This increase was followed by a gain of around 2.27%, bringing its current market capitalization to an impressive $468 billion. The price of Ethereum as of 8:10 a.m. ET on Monday was reported at $3,899. On the other hand, Bitcoin (BTC) saw a slight decline in price by 1% within the same timeframe and is currently priced at $68,381.

Based on QCP’s analysis, there’s growing enthusiasm among market players for Ethereum over Bitcoin. This is particularly noticeable in anticipation of institutional investment once Ethereum’s spot ETF becomes available for trading. QCP maintains a favorable stance towards Ethereum, although they don’t foresee significant price surges until the SEC gives its approval to the S-1 filings and there’s evidence of inflows – an eventuality they believe is imminent.

As an analyst at QCP, I find it intriguing that we identify the $3,000 mark as a significant support level for Ethereum. With crypto assets gaining prominence in the forthcoming US elections, this price point has taken on increased importance. Moreover, institutional investment in the ETH spot ETF is expected to maintain Ethereum’s value above this crucial threshold.

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2024-05-27 17:57