Singapore-based cryptocurrency company QCP Capital predicts that the price of ETH could rise as much as 60% in the coming months if spot Ethereum ETFs are approved in the US. This prediction is based on the market impact of the spot Bitcoin ETF approvals in January. According to CoinGecko data, the price of Bitcoin rose from $42,000 to $73,000, an increase of close to 70% in the two weeks after the ETFs began trading.

While supporting its forecast, QCP Capital also points out market volatility. The company states that the fact that implied volatility (an indicator that measures the market expectation of the future price movement of a financial product) as of Friday is above 100% indicates that the market expects an active period. He also predicts that the ETF of the investment company named VanEck has been listed with DTCC (Depository Trust & Clearing Corporation) and approval may occur next week.

These developments also attract the attention of investors. ETH purchasing activity has increased on both centralized and blockchain-based cryptocurrency exchanges. On-chain analysis company CryptoQuant stated in a report published on Wednesday that investors purchased more than 100,000 ETH in spot markets on Tuesday as the positive decision news emerged. This figure was recorded as the highest daily ETH purchase level since September 2023.

There is also activity in Ethereum futures. The amount of open positions reached a record level of 14 billion dollars. This figure accounts for 67% of the open interest in Bitcoin futures, which is an unusually high level. A record amount of $2.85 billion in Ethereum futures was traded on the Chicago Mercantile Exchange, preferred by institutional investors, on Tuesday. A record 1,135 Ethereum options ($216 million) were traded on the same day.

CryptoQuant comments on this activity as follows: “Traders appear to be seeking greater exposure to ETH at the moment compared to Bitcoin. The highest daily spot purchase from ETH permanent investors has occurred so far in 2024.”

However, in addition to this excitement, analysts also point out points that need attention. The fact that investors have recently sent large amounts of ETH to the stock exchanges suggests that prices may experience volatility in the coming days. High stock market flow is often associated with price volatility.

A more important risk factor is that the ETF application will be rejected. CryptoQuant analysts warn that in such a situation, a “significant price correction” may occur.

At this point, it is important to remember that six different organizations submitted proposals for spot Ethereum ETF approval in the USA. These organizations, including important names such as BlackRock, have updated their offers in recent days and removed their staking (locking) plans. Staking is the process of earning rewards for locking a cryptocurrency for a certain period of time. This suggests that staking may have presented a regulatory hurdle.

As a result, spot Ethereum ETF approval in the US could be a major turning point for the cryptocurrency market. If approved, the ETH price is expected to rise and investor interest will increase. However, ten-month rejections and market volatility are considered risk factors for investors.

These developments show that the cryptocurrency market is moving towards greater integration with traditional financial markets. ETFs provide traditional investors with easier access to cryptocurrencies. This could pave the way for new funds to flow into the market and contribute to cryptocurrencies becoming more stable in the long term.

However, it is important to remember that the cryptocurrency market is still a relatively new and unregulated field. Although developments such as ETF approval are exciting, it is important for investors to be cautious and always conduct thorough research. Investment decisions should be made based on personal risk tolerance and investment objectives.