QCP: Ethereum likely to surpass Bitcoin in midterm

2024-01-17 13:36:17

Ethereum is outperforming Bitcoin, driven by market anticipation of potential spot ETH ETF approvals.

Ethereum (ETH) is showing signs of outperforming Bitcoin (BTC) in the midterm, according to QCP Capital’s latest market update report. This shift in market dynamics is linked to the anticipation of potential approvals for spot ETH ETFs.

Recently, the U.S. Securities and Exchange Commission (SEC) approved multiple spot Bitcoin ETFs, following which Ether’s value saw an uptick of over 5%. In contrast, Bitcoin’s price experienced a decline of more than 6% during the same period.

QCP Capital analysts project that Ethereum’s upward trajectory is likely to persist, especially with the narrative shifting toward the likelihood of ETH spot ETF approvals. Furthermore, the report highlights a notable ETH/BTC exchange rate increase, rising from 0.05 to 0.06 within a week.

Upcoming significant events in the crypto space, such as Bitcoin’s halving in mid-April and potential spot Ethereum ETF approvals starting from May, are also expected to impact market trends.

The potential for a spot Ether ETF gained further momentum following remarks from BlackRock CEO Larry Fink, who acknowledged the value of such a product in the United States. BlackRock, the world’s largest asset manager, had previously filed with the SEC for a spot Ethereum ETF in November, following its application for a spot Bitcoin ETF in June.

The percentage of Ether’s circulating supply in profit has also risen over the past week, reaching a multi-year high of 91.8%. Bitcoin has decreased to 86.2%, indicating growing investor confidence in Ethereum compared to Bitcoin.

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