In a recent announcement on their Telegram broadcast channel, asset trading firm QCP Capital has provided key insights into the widely anticipated BTC Spot ETF. The report speculates that the United States Securities and Exchange Commission (SEC) could approve one or more of the pending applications for BTC spot ETFs in less than three weeks. QCP predicts a possible announcement either at market close on January 5 or between January 8 and 10, 2024.
Market’s anticipation could quickly turn to the ETH spot ETF, potentially leading to some switching out of BTC to ETH. But any ETH spot ETF is still many months away.
— Wu Blockchain (@WuBlockchain) December 21, 2023
One significant development leading up to the launch is the resolution of the “cash only” versus “in-kind” debate. Virtually all ETF providers have conceded to the SEC’s “cash only” demand, addressing the last sticking point in the approval process.
As the launch date approaches, QCP Capital highlights a potential scenario where the initial demand for the BTC Spot ETF might fall short of market expectations.
This anticipation sets the stage for a classic “sell the news” situation in the second week of January, as suggested by the firm. Analysts predict topside resistance for BTC in the 45–48.5k region, with a potential retracement to 36k levels before the resumption of the uptrend.
Despite the expected short-term correction, QCP Capital expresses confidence in the continuation of the upward trend. For those already holding BTC positions, QCP Capital suggests a tactical play of selling covered calls to capitalize on elevated forwards and volumes. Additionally, buying out-of-the-money puts is recommended by QCP Capital to navigate the post-ETF dip effectively.
QCP Capital suggests keeping an eye on Ether (ETH) as a potential laggard play. With market anticipation possibly shifting to an ETH spot ETF in the future, there could be a trend of switching from BTC to ETH. The ETH/BTC cross is noted for its strong support at the 0.051 level, adding to the allure of Ether as a strategic investment.
While QCP Capital believes an ETH spot ETF is still months away, it anticipates that the recent applicants of BTC spot ETFs may swiftly file for an ETH spot ETF. QCP Capital mentioned that such headline excitement could create a speculative uplift for ETH prices, regardless of its immediate viability.
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