• Ethereum may be the only crypto asset other than Bitcoin to receive approval as a spot exchange-traded fund (ETF) in the United States.
• Bernstein said there is a 50% chance the ETF will be approved by May.
• Ethereum’s blockchain upgrade, Denkun, scheduled for March, will reduce transaction costs.

Bitcoin (BTC)’s recent rally has been driven by the spectacular introduction of exchange-traded funds (ETFs). Investment firm Bernstein said in a research report on February 19 that Ethereum (ETH), the second-largest cryptocurrency, may be the next place to look.

Ethereum is “the only crypto asset likely to receive spot ETF approval from the SEC in the future.”

According to Bernstein, there is about a 50% chance that an Ethereum spot ETF will be approved by May, and it is almost certain that it will be approved within the next 12 months.

A number of traditional financial companies are racing ahead with Ethereum ETFs in the US, boosting the token’s medium-term prospects. Franklin Templeton, BlackRock, and Fidelity are all companies that have received Bitcoin ETF approval from the U.S. Securities and Exchange Commission (SEC) and have filed applications for an Ethereum ETF. .

Analysts Gautam Chhugani and Mahika Sapra said, “Ethereum has a strong impact on its staking yield dynamics, green design, and the ability of institutional investors to build new financial markets.” Its usefulness for investors makes it suitable for adoption by mainstream institutional investors.”

Ethereum’s yield market will grow in tandem with the crypto asset’s market capitalization, and “if the ETF design includes staking yield, it will become a unique ETF driver,” the report’s authors wrote. ing.

Bernstein believes that institutional investors don’t just want to invest in Ethereum spot ETFs, they want to “build a more transparent and open tokenized financial market on the Ethereum network,” and that “its usefulness… “Sex becomes more than assets,” he adds.

Ethereum’s next upgrade, Dencun, scheduled for March, will “provide dedicated corridors and block space for rollups, further lowering transaction costs by 50% to 90%.” the report states.

｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: Nikhilesh De/CoinDesk
｜Original text: Ether Could Be the Next ‘Institutional Darling,’ Bernstein Says