Anticipation Grows for Spot Bitcoin ETF Debut, Expected in the Next Three Weeks

The imminent launch of a spot Bitcoin ETF is drawing considerable attention, with expectations pointing to its debut within the next three weeks. QCP Capital, a Singapore-based crypto investment firm, predicts that approval might occur either at the market close on January 5th or between January 8th and 10th in 2024.

All ETF providers have now met the SEC’s requirement for a “cash only” policy, which suggests Bitcoin may face resistance in the 45-48.5k range, with a potential dip to 36k before resuming its upward trajectory.

Complete Compliance with ‘Cash Only’ Policy by ETF Providers

The investment firm noted that the debate between “cash only” and “in-kind” approaches has been settled, with ETF providers aligning with the SEC’s preference for a “cash only” strategy. This adjustment could lead Bitcoin to encounter some resistance, potentially followed by a pullback, before continuing its upward movement.

QCP Capital advises Bitcoin investors to consider selling covered calls to leverage the current high forwards and volatilities and possibly buying out-of-the-money puts to navigate the expected post-ETF launch dip. The firm anticipates a strong rally aligned with the upcoming Bitcoin halving event.

The Potential Shift to Ethereum

While Bitcoin is currently the center of attention, Ethereum also presents an interesting opportunity as a potentially undervalued asset. QCP Capital suggests that market focus might soon shift towards a spot ETH ETF, possibly leading to a transfer of interest from Bitcoin to Ethereum.

Though a spot ETH ETF might be several months away, the firms that recently received approval for their spot BTC ETFs are expected to quickly move to obtain approval for Ethereum-tracking products. This shift could spark speculative interest in Ethereum prices, driven by the buzz around such ETFs, regardless of the underlying fundamentals.

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