According to QCP Capital, ETH has the potential to outshine BTC in terms of price if the SEC approves the spot Ethereum ETFs within this week.

A cryptocurrency trading enterprise located in Singapore. QCP Capital Their latest insights on the ETH market were disclosed as the United States Securities and Exchange Commission (SEC) approaches its deadline for evaluating the first round of spot Ethereum ETF applications, including those from VanEck on May 23 and Ark Invest/21Shares on May 24. Analysts believe that should these applications gain approval, ETH may see enhanced price performance compared to BTC. SEC The company pointed out that last Friday marked the lowest ETH to BTC exchange rate since February 2021. Additionally, the options market showed a decline in interest, suggesting that traders expect either a rejection of the ETF applications or predict that approval would not significantly affect the market.

It was further noted that ETH has shown resilience, consistently defending its position throughout the year and establishing a reliable level of support. Because ETH serves both as a value store and a foundational Layer 1 blockchain, the successful launch of its spot ETF could result in it outperforming BTC. Furthermore, the current apathy in the market hints that if the ETF gets unexpectedly approved, it might surprise investors and potentially instigate a short squeeze, allowing the market to bounce back to its previous highs swiftly.

QCP Capital Presently, ETH is trading at $3,102, marking a 0.33% rise and keeping above the $3,100 threshold for 24 hours, per CoinMarketCap. ETH holds the second position in the cryptocurrency hierarchy, boasting a market cap of $372 billion, and in the last day, trading volume reached $11.107 billion, reflecting an increase exceeding 36%. the $2900 level U.S. fund managers predict the likely rejection of Ethereum ETFs ahead of the SEC's ruling, while JPMorgan maintains a positive outlook.

As the deadline for the SEC's decision nears, several American fund managers have expressed their views, foreseeing a rejection due to the absence of meaningful engagement with the SEC, unlike the situation before the approval of Bitcoin ETFs. Jan van Eck, CEO of VanEck, recently told CNBC that he anticipates the rejection of the VanEck Ethereum ETF this May. Similarly, CoinShares CEO Jean-Marie Mognetti conveyed to CNBC that he does not expect any approvals this year.

There has been a notable decrease in analysts' expectations for ETF approval this month. On the other hand, JPMorgan holds a more optimistic view. Nikolaos Panigirtzoglou, a managing director and global market strategist at JPMorgan, speculates that if the spot Ethereum ETF does not gain approval in May, it may lead to legal actions. He still believes there's a 50% chance of approval this month, even with recent information suggesting that the SEC is investigating the Ethereum Foundation and exploring legal frameworks.

Securities and Exchange Commission

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