© Reuters
Brokerage firm Bernstein highlighted a positive medium-term outlook for , driven by the potential approval of Ethereum-based exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). ).
In a recent research report, Bernstein said that Ethereum's native cryptocurrency Ether (ETH) has a strong chance of receiving spot ETF approval, becoming the second digital asset to achieve this milestone after .
According to Bernstein, the probability of the Ether spot ETF being approved in May is around 50%, with an almost certain possibility within the next 12 months. This optimistic forecast is boosted by interest from financial heavyweights such as Franklin Templeton, BlackRock (NYSE 🙂 and Fidelity, which have already seen Bitcoin ETFs approved and are now applying for their Ether counterparts.
Furthermore, Bernstein's report suggests that other leading blockchain ecosystems such as BNB Chain, Aptos, and SUI could collectively reach a valuation of $1.4 trillion.
Solana, in particular, is expected to lead the development of consumer-driven applications such as stablecoin payments and gaming.
“We expect Solana to lead the charge for fast-performing blockchains, offering a more optimal design and user experience for more consumer-driven applications, i.e. stablecoin payments and consumer gaming,” it reads. in the report.
Bernstein analysts also highlighted Ethereum's appeal for widespread institutional adoption, citing its staking performance dynamics, environmentally friendly design, and the network's ability to develop new financial markets. The report suggests that the growth of Ether yield markets could lead to new ETF designs that incorporate staking yields.
The report further underscores Ethereum's usefulness beyond simply serving as an asset for ETFs. Institutions are interested in using the Ethereum network to create more transparent and open tokenized financial markets, indicating the broad use cases the currency offers beyond asset collection.
Ethereum's most recent Dencun upgrade was notable for its success in reducing transaction costs by 50% to 90%. Bernstein projects that the Ethereum ecosystem will reach a valuation of $1.8 trillion, including the Ethereum network, staking infrastructure, Layer 2 chains, and Ethereum-based DeFi applications.
According to analysts at Bernstein, Bitcoin's recent $10,000 pullback from all-time highs above $73,000 to around $63,000 presents a dip buying opportunity ahead of the next halving in April.
In a note to clients, Bernstein described Bitcoin's current consolidation phase as temporary, offering traders the opportunity to reposition their risk ahead of the halving event. Analysts maintain a bullish outlook on Bitcoin and the entire crypto ecosystem, and view the next 18 months as an opportunity for growth.
Bernstein previously argued that public mining stocks are the best indicator of Bitcoin's price trajectory, especially as it heads toward its 2024-2025 cycle goal. They also predicted that the overall crypto market capitalization would triple to reach $7.5 trillion by the end of 2025.
