• The U.S. may approve a spot ETF for ether, the only digital currency other than bitcoin.
  • By May, there is a 50% probability of ETF approval.
  • Dencun will reduce transaction costs. This upgrade to the Ethereum blockchain is due in March.

BTC Price Index and Live Chart – CoinDesk”>(BTC) recent rally has been driven by the spectacular introduction of exchange-traded funds (ETF). ETH Price Index and Live Chart – CoinDesk”>(ETH), the second-largest cryptocurrency, broker Bernstein said in a research report on Monday.

The report stated that Ether was “probably the only digital asset likely” to receive a SEC approval for a spot-ETF.

Bernstein estimates that there’s a 50% chance the ether spot ETF will be approved by May, and a near-certain probability in the following 12 months.

Several traditional finance firms in the U.S. are competing for an ETF, which will boost the token’s outlook on the medium term. Franklin Templeton (FT), Blackrock (BRK), and Fidelity are three firms that have applied for an ether exchange-traded fund. All of these companies had their bitcoin ETFs approved and registered by the Securities and Exchange Commission.

Analysts Gautam Chugani and Mahika Sappra wrote that Ethereum, with its staking-yield dynamics, environmentally friendly design and institutional utility for building new financial markets is well-positioned for mainstream institution adoption.

The authors stated that the Ether yield market would grow in tandem with the crypto-market cap, and “could power unique ETFs if staking yields were included in the ETF’s design.”

The broker states that institutions are not just interested in launching ether spot ETFs. They want “to build more transparent and tokenized financial markets using the Ethereum network,” and that “utility goes beyond asset gathering.”

Ethereum’s next upgrade, <a href="https://www.coindesk.com/tag/dencun/#:~:text=Ethereum's%20Dencun%20Upgrade%20Reaches%20Final,as%20making%20data%20availability%20cheaper. The report stated that Dencun is scheduled to be released in March and "provides a dedicated blockspace and corridor for roll-ups, reducing transaction costs by 50%-90%."

Read more: Ether traders target $3.5K as the price of ETH jumps on ETF expectations

Sheldon Reback is the editor.