Bernstein, a top brokerage firm, reports a surge in positive sentiment for Ethereum (ETH), backed by a significant purchase by a crypto whale wallet, which has invested around $66 million in the cryptocurrency. The growing interest in Ethereum is attributed to its potential for institutional acceptance and the possibility of a U.S. Securities and Exchange Commission (SEC)-approved spot Ethereum ETF gaining traction.
Spotlight on Institutional Adoption
The anticipation surrounding Ethereum’s acceptance by institutions is high as industry giants like Blackrock and Fidelity, who have shown interest in Bitcoin ETFs, are also preparing to launch Ethereum ETFs in the U.S. market. Analysts at Bernstein posit a 50% likelihood of an Ethereum ETF approval coming as soon as May, with a near certainty within the next year.
Expanding Beyond ETFs
Ethereum’s prospects extend well beyond ETFs, with expectations that its network will play a pivotal role in building transparent, tokenized financial markets. Bernstein analysts Gautam Chhugani and Mahika Sapra have expressed confidence in Ethereum’s potential for widespread institutional adoption, citing its staking yields, environmentally friendly design, and utility in financial market innovation. BlackRock CEO Larry Fink has also shown support for an Ethereum ETF, hinting at a broader embrace of blockchain by the investment heavyweight.
Adding to Ethereum’s potential, the upcoming Denizen upgrade is anticipated to significantly reduce transaction fees by 50-90%. This development, combined with the whale wallet’s accumulation of 22,719 ETH, illustrates the escalating investor interest in Ethereum.
Ethereum has seen over a 4% price increase on the 24-hour charts, reaching close to $2,928. The overall market cap of ETH now exceeds $350 billion, with a slight decline in 24-hour trading volume. The relative strength index (RSI) is at 67, which could suggest overbuying, but this is contradicted by trading volume data.