Recently, Bitcoin has continued to rise, spurred by the approval of spot ETFs. Brokerage firm Bernstein said in a research note on Monday that now may be the time to look at the second-largest cryptocurrency, Ethereum.
Besides Bitcoin, ether “may be the only digital asset likely to receive approval for a spot ETF from the U.S. Securities and Exchange Commission (SEC),” the report said.
Bernstein said the Ethereum spot ETF has about a 50% chance of being approved in May and will almost certainly be approved within the next 12 months.
Currently, many traditional financial companies are racing to submit Ethereum ETF applications in the United States, which is boosting the medium-term prospects of the token. Franklin Templeton, BlackRock and Fidelity, which all have SEC-approved Bitcoin ETFs, have also submitted applications for Ethereum ETFs.
Analysts Gautam Chhugani and Mahika Sapra said: “Ethereum is primed for mainstream institutional adoption due to its staking yield dynamics, eco-friendly design and institutional utility in building new financial markets.”
The brokerage said the Ethereum yield market will grow in tandem with its market capitalization and could “power unique ETFs if staking yields are included in the ETF design.”
Bernstein also noted that institutions don’t just want to launch an Ethereum spot ETF, they also want to “build a more transparent and open tokenized financial market on the Ethereum network,” adding that the “utility goes beyond asset pooling.”
Ethereum’s next upgrade, Dencun, is scheduled for March, which “provides a dedicated corridor and block space for rollovers, reducing transaction costs by another 50%-90%,” the report said.

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