The price of Ethereum (CRYPTO: ETH) could rise 60% or more in coming weeks should spot Ether exchange-traded funds (ETF) be approved in the U.S., according to a forecast by QCP Capital.
The forecast mirrors the rise in Bitcoin (CRYPTO: BTC) after spot ETFs of the largest Cryptocurrency were approved in January of this year.
The price of Bitcoin rallied to an all-time high of just under $74,000 U.S. in March as institutional fund managers bought the digital asset for their new spot ETFs.
The U.S. Securities and Exchange Commission (SEC) faces a deadline of today (May 23) to decide on an Ethereum ETF application from fund manager VanEck.
A second application by Ark Invest has a May 24 deadline.
Markets are widely expecting that the Wall Street regulator will approve the Ethereum spot ETF applications it has before it.
Like the Bitcoin funds, spot Ethereum ETFs will allow investors to track the price movements of the cryptocurrency without having to hold the asset in a digital wallet.
Futures traders have placed the odds that the SEC will approve the Ethereum ETFs at 75%. Those expectations have led to a 23% gain in Ethereum’s price over the last five days to $3,844.91 U.S.
QCP Capital is warning that Ethereum’s price could be volatile in the days following the SEC’s decision but that the asset should ultimately rise on ETF approvals.
A total of six institutions, including BlackRock (NYSE: NYSE:BLK), have filed with the SEC to launch spot Ethereum ETFs in the U.S. marketplace.