The Bitcoin price has seen some volatility recently swinging in the range between $42,000-$44,000. As of press time, Bitcoin is trading 2.87% up at a price of $43,620 and a market cap of $853 billion. The crypto community has been eagerly awaiting the approval of spot Bitcoin ETFs since BlackRock, WisdomTree, etc. submitted their updated S1 with cash creations.

Early Bitcoin ETF Approval Likely

A recent update from QCP Capital states that the spot Bitcoin (BTC) ETF approval can take place in less than three weeks. The announcement is likely to be made either at market close on January 5 or between January 8-10, 2024. Notably, the long-standing debate between “cash only” and “in-kind” settlement methods stands resolved, with most ETF providers conceding to the Securities and Exchange Commission’s (SEC) preference for “cash only.”

As the launch date approaches, QCP Capital highlights a crucial observation regarding the initial demand for the BTC Spot ETF. Contrary to market expectations, there is a likelihood that the actual demand may fall short in the early stages, potentially leading to a “sell the news” scenario in the second week of January.

In light of this, QCP Capital outlines expectations of topside resistance for BTC in the 45-48.5k region, with a possible retracement to 36k levels before the uptrend resumes. This analysis provides insights into the market dynamics surrounding the impending BTC Spot ETF launch and its potential impact on Bitcoin’s price trajectory. It is a bit contrary to the Matrixport report that suggests that the BTC price can move above $50,000 with the ETF approval.

Also, as the approval date nears, Bitcoin whales have once again returned to the market and they they might be accumulating during price corrections.

QCP Capital on Ethereum ETF

QCP Capital also suggests that Ethereum (ETH) could present an intriguing opportunity as a laggard play. The anticipation in the market, primarily focused on the Bitcoin (BTC) Spot ETF launch, might shift swiftly to the prospect of an Ethereum Spot ETF. This anticipation could lead to a scenario where investors switch from BTC to ETH. Recently, the SEC has also postponed its decision on spot Ethereum ETF applications by Hasdex and Grayscale.

QCP Capital notes a significant level of support in the ETHBTC cross at the 0.051 level, providing additional context for potential market movements. While QCP Capital believes that the approval of an ETH spot ETF is still several months away, they anticipate that BTC spot ETF providers, already approved, might promptly seek approval for an ETH spot ETF.

The excitement generated by such headlines has the potential to create speculative momentum for ETH prices, irrespective of the timeline for the actual launch of an Ethereum Spot ETF. QCP Capital’s analysis sheds light on the dynamic market dynamics surrounding Ethereum and the possible implications of evolving ETF trends

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.