Ether could surge 60% after ETFs are approved, trading firm says

Filip De Mott
Ether
EtherNurphoto / Getty Images

  • The price of ether could rise 60% if spot ETFs are approved, QCP Capital wrote.

  • The previous success of spot bitcoin ETFs serves as an example of potential upside.

  • The SEC has hinted it's ready to approve fund proposals, which could happen in the coming days.

Ether could be on the brink of a steep rally if it's able to imitate the ETF-approval-driven gains bitcoin achieved since January.

Eyes are currently on the second-biggest cryptocurrency as US regulators are deciding on whether to approve the first ether spot ETFs in the country. According to a post on Telegram from the crypto-trading firm QCP Capital, this could prompt 60% upside for the crypto token.

With verdict deadlines coming up, the SEC is expected to release its rulings as soon as Thursday. Reports that the agency was leaning to approve these filings came as a surprise to markets this week, and ether shot up nearly 22% since Monday.

"With Friday implied volatility above 100%, the market is expecting fireworks," QCP wrote. "BlackRock and five other issuers have amended their ETF filings with the SEC, and ⁠VanEck's ETF has been listed by the [Depository Trust and Clearing Corporation]. We think an approval is now highly likely with trading expected as early as next week."

QCP referenced bitcoin's ETF success in forecasting a 60% ether rally. That token's stellar run was set off in mid-January when the SEC similarly greenlit spot bitcoin ETFs. Since then, the apex cryptocurrency broke to an all-time high of over $73,000, though it has since pared back gains.

As a result, buying of ether has also risen sharply this month: since May 1, CryptoQuant data shows an 85% jump in ether taker buy volume, or the amount of crypto bought from sellers on an exchange.

Wall Street's fresh optimism for another ETF-led crypto boost has reinvigorated bullish outlooks on both ether and bitcoin. For instance, Standard Chartered confirmed its stance that ether could reach $8,000 by this year's end, further boosting bitcoin to a $150,000 target.

What's more, head of FX Research Geoff Kendrick wrote that the spot ether ETFs are unlikely to stumble on the same issues that tormented bitcoin, such as heavy inflow volatility.

Read the original article on Business Insider

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