The prospect of Ethereum Exchange-Traded Fund (ETF) approval has significantly brightened, with experts now giving it a 75% chance of success, up from just 25%. The shift comes as the SEC has requested exchanges to expedite updates to their 19B-4 filings, a move signaling a more favorable stance towards Ethereum ETFs.
Nate Geraci, co-founder of the ETF institute, is optimistic about the approval, citing the lack of legal grounds for the SEC to reject the filings. This optimism is bolstered by Ethereum's strong fundamentals, being the only net profitable settlement layer in the industry and on the verge of regulatory clarity in the US with a potential spot ETF approval.
Despite these positives, Ethereum remains surprisingly unpopular among retail investors, with significant negative sentiment prevailing. This sentiment seems disconnected from Ethereum's solid performance, including its profitability and pivotal role in the industry.
One of Ethereum's key strengths is its scalability, with Arbitrum, its primary Layer 2 scaling solution, generating approximately $7 million in annual earnings after costs. In contrast, Solana, valued significantly higher by the market, incurs losses of around $10 million daily, totaling $3.6 billion annually. Despite its achievements, Arbitrum has flown under the radar, receiving little media attention compared to its impact on global DeFi innovation.
The surge in Ethereum ETF approval odds reflects a growing recognition of Ethereum's potential and solidifies its position as a leading force in the crypto space.