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.
Make us preferred on Google
- 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
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
Ethereum’s ERC-8004 aims to put identity and trust behind AI agents
A new Ethereum standard seeks to give AI agents portable identities and reputations, letting them interact across companies and chains without relying on centralized gatekeepers.
What to know:
- Ethereum developers are set to roll out ERC-8004, a new standard that gives AI software agents persistent on-chain identities and a shared framework for establishing credibility.
- The standard defines three registries—identity, reputation and validation—that let agents register themselves, collect reusable feedback and publish independent checks of their work on Ethereum or layer-2 networks.
- Framed as neutral infrastructure rather than a marketplace, ERC-8004 aims to enable interoperable, gatekeeper-free AI services on Ethereum, even as ether trades just above $3,000 after a recent price gain.
Top Stories
