QCP Capital analysts say that “resounding lack of interest” Ethereum ETFs could be approved and traded on the Ethereum market. “easily” Pump ETH to its recent highs.
Recent market data suggests that investors are cautious about the approval of spot Ethereum Exchange-traded Funds (ETFsAnalysts warn that the sudden approval may trigger a squeeze of ETH, causing it to reach its current highs.
Analysts at QCP Capital stated in a research report that the ETH/BTC pairing has fallen to levels last seen back in February 2021. This suggests the market may be changing. “anticipating a rejection and a non-event.” QCP Capital, however, notes that Ethereum’s price has been defended at $2,900 multiple times over the course of the year.
In the current state of the market, approval for spot Ethereum ETH may come out of the blue and trigger a “short squeeze taking us easily back to recent highs,” QCP Capital. Ethereum is up to $4 066 since January. It remains, however, below its record high set in 2021 of $4 891. An ETF approval in this context could act as a major catalyst, driving ETH to these levels.
There are currently no signals coming from the U.S. Securities and Exchange Commission that a spot ETF for ETH is imminent. Bloomberg analyst Eric Balchunas said in a recent X post It is possible that SEC will consider Ethereum a securities in the decision-making processes, which would mean that approval odds are higher. “slim to none.”
David Han, a crypto exchange analyst, says that he is not concerned about the issue. says Market “may be underestimating the timing and odds of a potential approval,” The second largest cryptocurrency in terms of market value is now available “may yet have the potential to surprise to the upside in the coming months […].”
On May 23, the SEC will likely make a final decision regarding VanEck’s request for an Ethereum spot ETF.
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Source: crypto.news