Key Points
- QCP Capital believes Ethereum’s (ETH) price surge is unsustainable without spot ETH ETFs trading.
- The SEC’s approval of S-1 filings is needed for a significant ETH price increase, according to QCP Capital.
Singapore-based digital asset trading firm, QCP Capital, has expressed scepticism about the recent surge in the price of Ethereum (ETH).
The firm suggests that a sustainable increase in the price of ETH is unlikely without the complete listing and trading of spot ETH exchange-traded funds (ETFs).
Spot ETH ETFs and S-1 Filings
QCP Capital communicated through Telegram that it doesn’t anticipate any significant increase in ETH’s value until spot ETH ETFs receive significant inflows. This is expected to occur after the approval of S-1 filings by the United States Securities and Exchange Commission (SEC).
Previously, the US securities regulator approved 19b-4 filings from leading asset management firms such as VanEck, BlackRock, Grayscale, and Fidelity for spot ETH ETFs. However, the SEC’s approval of S-1 filings from these firms is still pending.
QCP Capital observed that ETH’s price increased from $3,810 to $3,940 as Asian investors reacted to bullish comments from former US president and potential 2024 presidential candidate Donald Trump. He emphasized the need for the United States to lead in the digital assets sector.
ETH Rally and Market Conditions
According to CoinMarketCap data, the trading volume of ETH increased by 62.74% over the past 24 hours, along with a 2.27% rise in market capitalization, which currently stands at $468 billion. Meanwhile, Bitcoin (BTC) experienced a 1% price decrease during the same timeframe.
QCP Capital stated that market participants are showing more bullishness in ETH than in BTC, especially with the potential institutional demand once the ETH spot ETF begins trading. However, the firm doesn’t anticipate a major breakout for ETH until the SEC approves the S-1 filings.
Interestingly, QCP Capital views the $3,000 price level as a strong support for ETH, as cryptocurrencies are becoming increasingly important in US elections. The firm predicts that potential institutional interest in the spot ETH ETF will help maintain ETH’s price above this support level.
