Ether Could Be the Next 'Institutional Darling,' Bernstein Says
Bitcoin's recent rally has been driven by the introduction of exchange-traded funds (ETFs), and now attention is shifting to ether (ETH), the second-largest cryptocurrency, according to a research report by broker Bernstein. The report suggests that ether is likely to get a spot ETF approval by the SEC, with a 50% chance of approval by May and a near-certain probability within the next 12 months. Several traditional finance firms, including Franklin Templeton, Blackrock, and Fidelity, have submitted applications for an ether ETF. The report highlights Ethereum's staking yield dynamics, environmentally friendly design, and institutional utility as factors that position it well for mainstream institutional adoption. The upcoming Ethereum upgrade, Dencun, is expected to reduce transaction costs by 50%-90%.
