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