QCP Capital Predicts ETH to Outperform BTC Amid ETH Spot ETF Approval Expectations

Singapore's QCP Capital, a crypto trading firm, predicts Ethereum will outperform Bitcoin as anticipation grows for a spot ETH ETF.

QCP Capital expects ETH to outperform BTC due to the expectation of an ETH spot ETF approval.

Ruholamin Haqshanas Last updated: January 16, 2024 23:11 EST | 2 min read

Source: Pixabay

QCP Capital, a Singapore-based crypto trading firm, has forecasted that Ethereum will outperform Bitcoin in the medium term.

In a recent post on Telegram, the company argued that the narrative surrounding potential ETH Spot ETF approvals will help ETH outshine BTC in the near future.

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The Appeal of ETH Forwards Despite Declining Yields

Both BTC and ETH forwards have experienced declines, but according to QCP Capital, ETH forwards still present an appealing opportunity. Despite a decrease in yields, they currently offer annual returns of 11-13%.

To take advantage of this, QCP Capital suggested that selling ETH 1-month 2200 Puts could be a viable strategy. This strategy provides yields above 21% annually and offers a good entry point in the event of a dip triggered by potential ETH spot ETF approvals.

Upcoming Events Shaping the Crypto Market

Looking ahead, QCP Capital highlighted two major upcoming events in the crypto space: the BTC halving scheduled for mid-April and the potential approvals of ETH Spot ETFs starting in May.

These events, along with macroeconomic factors, may have a significant impact on the market.

During the January Federal Open Market Committee (FOMC) meeting, QCP Capital expects to gain more insights into the pace of the balance sheet runoff, which was briefly discussed in December 2023.

While the market consensus suggests that the Federal Reserve will slow down the pace of quantitative tightening (QT), the specific timing and extent of this adjustment remain uncertain at present.

Spot Bitcoin ETFs See Around $10 Billion in Trading Volume

Since the introduction of the BTC Spot ETF a week ago, a total of $9.8 billion has been transacted across all 11 ETFs, with the Grayscale Bitcoin Trust (GBTC) alone accounting for $4.6 billion.

Interestingly, GBTC has witnessed outflows of $1.17 billion following its conversion from a Trust to an ETF. This comes as no surprise, as GBTC has consistently traded at a discount since 2020, reaching as low as -48% at the beginning of 2023.

The ETF conversion has presented long-awaited opportunities for GBTC holders to exit at par value, leaving the question of how much more of GBTC’s current $25.4 billion assets under management (AUM) will be withdrawn.

BTC experienced a surge to a high of $49,100 upon the ETF approval, but it has since retraced, consolidating above the $40,000 support level. Volumes have slowed down since the initial launch, with all eyes now focused on GBTC outflows.

QCP Capital previously highlighted the attractiveness of the ETHBTC cross when it traded below 0.05, both from a technical perspective and as a catch-up play for Ethereum. As anticipated, ETHBTC has since climbed higher to 0.06. QCP Capital expects ETH to maintain its outperformance over BTC in the medium term as the market narrative shifts towards the potential approvals of ETH Spot ETFs.

Anthony Scaramucci’s Bold Prediction for Bitcoin

Anthony Scaramucci, the founder and managing partner of hedge fund SkyBridge, has suggested that the price of Bitcoin could potentially reach $170,000 in the coming years.

Scaramucci’s prediction is based on two key factors: the growing demand for newly listed exchange-traded funds (ETFs) and the upcoming halving event scheduled for April.

He explained that if Bitcoin were to maintain its current price of around $45,000 at the time of the halving, it could see a remarkable surge to $170,000 by mid-to late 2025.

The Future of Ethereum and Bitcoin

Based on QCP Capital’s analysis, it seems that Ethereum has a favorable outlook compared to Bitcoin in the medium term. The potential approvals of ETH Spot ETFs could drive further growth and adoption of Ethereum, leading to increased demand.

For Bitcoin, the introduction of BTC Spot ETFs has generated considerable trading volume, but the market is closely watching GBTC outflows and its impact on the overall market.

As with any investment, it’s important to consider the risks and do thorough research before making any decisions. The cryptocurrency market is highly volatile and unpredictable.

FAQs

Q: What is the significance of potential ETH Spot ETF approvals? A: The potential approvals of ETH Spot ETFs could lead to increased adoption and demand for Ethereum, driving its price up and potentially outperforming Bitcoin in the medium term.

Q: Why has GBTC experienced outflows following its conversion to an ETF? A: GBTC has consistently traded at a discount since 2020, and the conversion to an ETF presented an opportunity for holders to exit at par value. The extent of GBTC outflows will depend on the decisions made by investors.

Q: What factors contribute to Anthony Scaramucci’s prediction of a $170,000 Bitcoin price? A: Scaramucci’s prediction is based on the growing demand for ETFs and the upcoming halving event scheduled for April. If Bitcoin maintains its price and experiences significant market adoption, it could reach $170,000 by mid-to late 2025.

Q: Should I invest in Ethereum or Bitcoin? A: Investing in cryptocurrencies carries risks, and it is essential to do thorough research and consider your individual investment goals and risk appetite. Consulting with a financial advisor is recommended.

Q: What are some key events to watch in the crypto market? A: In the coming months, the BTC halving in mid-April and potential approvals of ETH Spot ETFs in May will be significant events to watch. Additionally, macroeconomic factors and central bank decisions can impact the crypto market.

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References:

1. Notcoin P2E Game Telegram Hits 41 Million Users in One Week
2. Arbitrum’s Total Value Locked Surges Past $25 Billion, Token Nears $2
3. Ethereum Price Prediction: Dencun Upgrade Approaches January; ETH Could Reach $4,000

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