Singapore-based crypto asset trading firm QCP Capital said in its latest report that speculation regarding U.S. regulatory approval of an Ethereum exchange-traded fund (ETF) could lead to significant gains in the near future. “We expect ETH to continue to outperform BTC over the medium term as market attention gradually shifts to the approval of a potential Ethereum spot ETF,” the report states.

Furthermore, according to QCP Capital’s market report, Ethereum could outperform Bitcoin in the first half of the year, especially with the upcoming Bitcoin halving event happening in just three months. However, as has been the case before, the cryptocurrency market is vulnerable to global events. The report emphasizes that the market trajectory could be affected by events taking place around the world. “The next major crypto event is the BTC halving (expected in mid-April), as well as a potential ETH spot ETF that could be approved in May. At the same time, the cryptocurrency market could be subject to some directional influences from macroeconomic events.”

Regarding Ethereum spot ETFs, the report highlights its high-profile story, with BlackRock CEO Larry Fink recently expressing support for Ethereum and emphasizing its value as an ETF: “I see the value in Ethereum ETFs. These are just stepping stones to tokenization, and I really believe this is the direction we’re going to go.”

As of the time of the report, Ethereum is selling for $2,527, reflecting an increase of approximately 59% over the past three months. In addition, the report focuses on the upcoming general election in November 2024, a highly anticipated major event that has attracted the attention of many analysts. However, among the candidates, some obvious pro-cryptocurrency contenders have attracted the attention of observers. Industry leaders predict that the election results will have a profound impact on the priorities and regulatory stance of cryptocurrencies and shape the development trajectory of the entire industry. Meanwhile, the approval of the Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC) last week has attracted widespread media attention and sparked relevant debate.

The report also mentioned that a survey conducted by asset management company Grayscale in December 2023 showed that Americans are increasingly concerned about the rising cost of inflation. However, more and more people believe that Bitcoin has deflationary properties and see it as a reliable wealth reserve option. Against this background, more and more American citizens tend to see Bitcoin as a viable option.

In the next three months, the crypto market will usher in three key nodes, arranged in order of importance as follows:

  1. Bitcoin halving: expected to occur in April 2024, will result in a significant reduction in the new supply of Bitcoin, and along with the increase in ETFs, is expected to bring a large new demand for Bitcoin. The market generally believes that there will be a new round of rise in 2024, which is nicknamed the "flag bull market." Historically, Bitcoin prices have experienced significant changes in the year following the Bitcoin halving.

  2. Ethereum spot ETF approved: expected to be realized in May 2024. Some institutions, such as BlackRock, Fidelity, Invesco, etc., have applied for Ethereum spot ETFs, and the market has begun to expect that it may be approved in May, which has begun to have an impact on prices.

  3. Ethereum Cancun Upgrade: Expected to be implemented in February-March 2024, this upgrade will reduce the transaction costs on the Ethereum Layer2 network to one-tenth. The Cancun upgrade will have a profound impact on Ethereum, similar to the impact of the iPhone in the mobile Internet era. Low transaction fees and better transaction experience will promote the emergence of more application scenarios that can truly serve large-scale users.

Typically, people tend to overestimate short-term impacts and underestimate long-term impacts. The launch of the Bitcoin spot ETF marks a milestone, the first door to introduce crypto assets into the core assets of finance, and looking back many years later, this will be seen as a lasting and long-term positive.

Finally, walking alone is lonely. The bull market is coming. Qiqi’s no-threshold small circle welcomes everyone to join. Let’s move forward hand in hand and embrace the uncertainty of the future with a certain group. #ETFbitcoin #坎昆升级，了解layer2概念 $BTC $ETH