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

Ruholamin Haqshanas
Last updated: | 2 min read
QCP Capital Predicts ETH to Outperform BTC Amid ETH Spot ETF Approval Expectations
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 the BTC in the short future.

QCP said that while both BTC and ETH forwards have experienced declines, ETH forwards still present an appealing opportunity.

Despite a decrease in yields, they currently offer annual returns of 11-13%.

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

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.

In the meantime, the crypto market may also be influenced by macroeconomic events.

QCP Capital said it will be closely monitoring the January Federal Open Market Committee (FOMC) meeting, as well as the February Non-Farm Payroll (NFP) and Consumer Price Index (CPI) reports.

During the FOMC meeting, the firm 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par value, leaving the question of how much more of GBTC’s current $25.4 billion assets under management (AUM) will be withdrawn.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, the founder and managing partner of hedge fund SkyBridge, has suggested that the price of Bitcoin could potentially reach $170,000 in the coming year.

Scaramucci’s prediction is based on two key factors, including 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.