Ether could become a favorite for big companies, says Bernstein It might be the only digital money, besides bitcoin, that the government approves for a special investments.
Ether Could Be the Next 'Institutional Darling,' Bernstein Says. There's a 50% likelihood of the SEC approving an ETF for Ethereum (ETH) by May. The upcoming Ethereum blockchain upgrade, Dencun, in March, is anticipated to significantly reduce transaction expenses. Broker Bernstein suggests shifting attention from Bitcoin's recent surge driven by ETFs to Ether (ETH), the second-largest cryptocurrency.
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According to Bernstein's research report, Ether is "likely the only other digital asset positioned for a spot ETF approval by the SEC." The report indicates a 50% chance of Ether's spot ETF approval by May, with near-certain approval within the next 12 months. Several traditional financial firms, including Franklin Templeton, Blackrock (BRK), and Fidelity, have applied for an Ether ETF in the U.S., enhancing the token's medium-term outlook.Analysts Gautam Chhugani and Mahika Sapra highlight Ethereum's advantages, such as staking yield dynamics, environmentally friendly design, and institutional utility for establishing new financial markets, positioning it favorably for mainstream institutional adoption. They predict that Ether yield markets could grow alongside the crypto's market cap, potentially powering unique ETFs if staking yields are incorporated into the ETF design.Bernstein emphasizes that institutions aim not only to launch Ether spot ETFs but also to "construct more transparent and open tokenized financial markets on the Ethereum network," emphasizing utility beyond asset accumulation.Dencun, Ethereum's upcoming March upgrade, is set to provide a dedicated corridor and blockspace for roll-ups, leading to a further 50%-90% reduction in transaction costs, as mentioned in the report.In summary, there's a significant possibility of an Ether ETF approval by the SEC, with various financial institutions actively pursuing it. Ethereum's positive features, coupled with the Dencun upgrade's cost-cutting measures, make it well-positioned for broader institutional adoption and the development of transparent financial markets.
