Share this article
Ether Could Be the Next 'Institutional Darling,' Bernstein Says
The second-largest cryptocurrency is probably the only digital asset other than bitcoin likely to get spot ETF approval from the SEC, the report said.
Updated Mar 8, 2024, 9:44 p.m. Published Feb 19, 2024, 8:44 a.m.
- Ether may be the only digital asset other than bitcoin to get spot ETF approval in the U.S.
- There is a 50% chance of ETF approval by May.
- Dencun, the Ethereum blockchain's upgrade due in March, will slash transaction costs.
Bitcoin's recent rally has been driven by the spectacular introduction of exchange-traded funds (ETF). It may be time to now focus on ether , the second-largest cryptocurrency, broker Bernstein said in a research report on Monday.
Ether is "probably the only other digital asset likely to get a spot ETF approval by the SEC," the report said.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Bernstein says there is about a 50% chance of ether spot ETF approval by May and near-certain probability of approval in the next 12 months.
A number of traditional finance firms are vying for an ether ETF in the U.S., which is boosting the token's medium-term outlook. Franklin Templeton, Blackrock (BRK) and Fidelity, all of which had bitcoin ETFs approved by the Securities and Exchange Commission, are among firms that have submitted applications for an ether ETF.
"Ethereum with its staking yield dynamics, environmentally friendly design, and institutional utility to build new financial markets, is well positioned for mainstream institutional adoption," analysts Gautam Chhugani and Mahika Sapra wrote.
Ether yield markets would grow in lockstep with the crypto's market cap and could "power unique ETFs, if the staking yields are included in the ETF design," the authors wrote.
The broker notes that institutions don't just want to launch ether spot ETFs, they want to "build more transparent and open tokenized financial markets on the Ethereum network," adding that the "utility is beyond asset gathering."
Ethereum's next upgrade, Dencun, scheduled for March, "provides for a dedicated corridor and blockspace for roll ups, making transaction costs cheaper by another 50%-90%," the report said.
Read more: Ether Traders Target $3.5K as ETH Jumps on ETF Expectations
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Bitcoin Swings Wildly as Fed's Powell Straddles Labor Market and Inflation Issues
"Powell is threading the needle between their two mandates," said one analyst.
What to know:
- Crypto prices were volatile on Wednesday, erasing much of their gains following the Fed's rate cut earlier.
- In his post-meeting press conference, Fed Chair Jerome Powell took note of a labor market that might be weaker than previously thought, while also sounding cautious about gains made in fighting inflation.
Top Stories
