Spot Bitcoin ETF Launch Expected Soon
All eyes are on the upcoming launch of a spot Bitcoin ETF, which is expected to be announced in about three weeks. QCP Capital predicts that the approval could come either on January 5th or sometime between January 8th and 10th, 2024.
ETF providers have unanimously agreed to comply with the SEC’s requirement for a “cash only” approach. This decision has resolved the final hurdle and all providers have accepted the SEC’s insistence on this approach. As a result, QCP Capital believes that Bitcoin may face resistance in the range of 45-48.5k, with a potential retracement to around 36k before the upward trend resumes.
ETF Providers Embrace “Cash Only” Approach
QCP Capital, a crypto investment firm based in Singapore, has revealed that all ETF providers have embraced the SEC’s requirement for a “cash only” approach. They have abandoned the search for a middle ground and complied with this requirement.
This development leads QCP Capital to believe that Bitcoin could encounter resistance within the range of 45-48.5k, with a potential retracement to around 36k before resuming its upward trend. For those already invested in Bitcoin, selling some covered calls could be a strategic move to capitalize on increased forwards and volatilities.
Ethereum’s Potential Opportunity
While most of the focus is on Bitcoin, Ethereum could present an interesting opportunity as a lagging asset. QCP Capital suggests that market anticipation may shift towards a spot ETH ETF in the future, potentially leading to a shift from Bitcoin to Ethereum.
The investment firm also notes that although the launch of a spot ETH ETF is still months away, recently approved spot BTC ETF providers may promptly seek approval for an Ethereum product. This could generate speculative enthusiasm for Ethereum prices, regardless of whether it is justified or not.
Hot Take: Spot Bitcoin ETF Launch and Ethereum’s Potential
The launch of a spot Bitcoin ETF is highly anticipated, with expectations that the announcement will be made in the next few weeks. ETF providers have unanimously agreed to comply with the SEC’s requirement for a “cash only” approach. This decision has resolved any uncertainties and paved the way for the launch.
While Bitcoin takes the spotlight, there is also potential for Ethereum to shine as a lagging asset. As market anticipation shifts towards a spot ETH ETF in the future, we may see increased interest and speculative enthusiasm for Ethereum prices.
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