Market analysts at QCP Capital have highlighted the potential for Ethereum (ETH) to outshine Bitcoin (BTC) in the near future, as the narrative surrounding a spot Ethereum exchange-traded fund (ETF) gains momentum.
Despite Bitcoin’s recent volatile price action, including a swift drop from $69,400 to $59,200 within hours, analysts note that funding rates have returned to more reasonable levels, hovering around 30% annually on Binance. In light of this, QCP Capital anticipates the outperformance of the ETH/BTC pair, citing the growing speculation surrounding a spot Ethereum ETF.
Following the significant liquidation of over $1 billion worth of leveraged long positions on Binance, the market swiftly rebounded, with strong support observed around the $60,000 level for Bitcoin. Analysts underscore that term futures are still trading at a notable premium to spot prices, with a surge in client activity focused on selling the spot-forward spread.
While Bitcoin remains relatively close to its all-time high, trailing only 4.3% from its peak reached on March 5, Ethereum is positioned further away from its 2021 record by over 20%, according to CoinGecko data. This discrepancy suggests the potential for Ethereum to experience rapid value appreciation in the coming period.
The evolving crypto landscape has seen increased interest from Wall Street giants in introducing more spot crypto ETFs, particularly following the U.S. Securities and Exchange Commission’s (SEC) approval of all applications for spot Bitcoin ETFs in January. Reports indicate ongoing discussions between the SEC and Ethereum ETF applicants, with decisions on spot Ethereum ETFs postponed until May at the earliest.
VanEck’s filing, alongside applications from BlackRock, Franklin Templeton Grayscale, and Invesco Galaxy, awaits a response by May 23, contributing to the anticipation surrounding the potential launch of a spot Ethereum ETF.
