Bernstein: Ethereum ETF has every chance to become a new instrument for large investments

Experts at AllianceBernstein have identified Ethereum as the sole digital asset, after Bitcoin, with the potential to obtain approval for spot exchange-traded funds (ETFs) in the United States.

The likelihood of the US Securities and Exchange Commission (SEC) granting approval is substantial, with estimates of around 50% by May and close to 100% within the next year.

“Ether is in a prime position for widespread institutional adoption due to its solid fundamentals, environmentally friendly design, and its ability to create new financial markets. It is highly likely that this is the only digital asset, apart from Bitcoin, that can receive ETF approval from the SEC,” stated analysts at Bernstein.

Bernstein analysts believe that the SEC’s decision may be influenced by the enthusiasm of traditional stock market participants, who not only aim to launch spot ETFs for Ethereum but also express their desire to “establish more transparent and accessible tokenized financial markets on the Ethereum network, where utility extends beyond asset accumulation.”

As the value of Ethereum continues to rise, the staking of the second largest cryptocurrency by market capitalization is gaining significant traction. The total amount of ETH staked on the Beacon Chain has now reached 30,234,354, accounting for nearly 25% of the circulating coins.