According to the latest update from QCP Capital, this real asset-backed ETF is expected to be announced in less than three weeks, with possible dates between the market close on January 5 or between January 8 and 10, 2024.
As we get closer to launch, a crucial point of debate -the backstop method- has been resolved, with most ETF providers bowing to the SEC’s demand to use cash only rather than other methods such as ‘in -kind’.
However, market expectations regarding initial BTC ETF demand could not be met, potentially triggering a typical “sell the news” scenario in the second week of January.
Upside resistance is expected for BTC in the range of $45,000 to $48,500, with a possible correction to around $36,000 before resuming the uptrend.
Despite this possible correction, QCP Capital remains confident in the continuation of the long-term uptrend, possibly after a few weeks, preparing for a strong rally in the context of the BTC halving.
For those long on BTC, it is suggested to strategically sell covered calls to take advantage of elevated futures and volumes, and consider purchasing out-of-the-money puts to manage the potential post-launch decline of the ETF.
Additionally, the report points to Ethereum (ETH) as an asset to watch
As the market’s attention could quickly turn towards a possible ETH Spot ETF in the future, eyes are also on the second largest crypto by capitalization.
This could result in a shift of interest from BTC to ETH, highlighting strong support in the ETH/BTC cross at the 0.051 level, adding additional appeal to Ethereum as a strategic investment.
While an Ethereum Spot ETF is believed to still be several months away, newly approved BTC ETF providers could quickly file applications for a Spot ETF, generating speculative excitement around the price of Ethereum, regardless of its immediacy.
Finally, QCP Capital announced that this will be its last market update for the year and wished everyone a happy holiday and a pleasant end to this eventful year in the financial sphere.