According to Bernstein Private Wealth Management— a major U.S. brokerage– in a Q1 research report about Ethereum released in February, Ethereum is most likely the only cryptocurrency other than Bitcoin that will likely see spot ETF approval from the SEC.
“Ethereum with its staking yield dynamics, environmentally friendly design, and institutional utility to build new financial markets, is well positioned for mainstream institutional adoption,” wrote Bernstein analysts Gautam Chhugani and Mahika Sapra.
One really exciting tidbit from the report: Institutions don’t just want to launch a spot ETF for regulated investors to buy and sell Ethereum in SEC waters, they are excited to participate in Web3 over the Ethereum blockchain and “build more transparent and open tokenized financial markets on the Ethereum network.”
When will an Ether ETF get approved? Bernstein said in March there is a near-certain chance the SEC will approve an Ethereum ETF within the next 12 months. A news report on Investing.com says:
“This optimistic forecast is buoyed by interest from financial heavyweights like Franklin Templeton, BlackRock (NYSE:BLK), and Fidelity, which have already seen Bitcoin ETFs approved and are now applying for Ether counterparts.”
If you believe the dog days are over, don’t miss out on Kai Cat (KAI)!
Which Crypto Will Boom in 2024?
More recently, the leading U.S. crypto exchange Coinbase predicted “will soon outshine other cryptocurrencies, based on recent research findings,” according to a May 17 report by BeinCrypto.
“Although Ethereum has underperformed YTD, its long term positioning remains strong in our view,” the Coinbase monthly outlook report stated. “We think it has the potential to surprise to the upside later in the cycle.”
According to the mean reversion principle, it may be that because Ethereum underperformed YTD, it may be more undervalued in the market against its peers and represent a value buying opportunity for crypto value investors who like to buy altcoins when their price is too low:
“Mean reversion is a financial theory that suggests asset prices will eventually return to their long-term mean or average. This concept is grounded in the belief that asset prices and historical returns will gravitate toward a long-term average over time.” (Investopedia)
On top of that, Ethereum is a solid AI play in 2024, a year in which artificial intelligence is one of the dominant investor meta strategies. Then add the upcoming Ether ETF approvals to Ethereum’s technical undervaluation and its AI proposition, and here’s an altcoin that’s primed to move.
Ethereum is the world’s number one smart contract cryptocurrency network. It can’t get enough liquidity to meet demand. That’s why new meme coins like SHIBA and PEPE often outpace gains made by the base layer ETH tokens by multiple orders of magnitude. One new Ethereum project Kai Cat (KAI) is in presale now– and gunning for the big doges!
Will Ethereum Reach $8,000 In 2024?
There is no telling for certain what the prices of digital commodities in open liquid exchange markets will do until the markets have moved, but markets do give hints of their future intentions that the well-informed altcoin investor can mind to better calibrate their forward view…
Other than the 4-year supply halving this April, the single most important event in the Bitcoin market cycle, the next most important piece of its price in 2023–2024 was the Bitcoin ETF rally. First the retail rally starting in October last year, then the Wall Street Bitcoin rally after the SEC approved a dozen ETFs on Jan. 10, 2024.
There was a 3-month window between the beginning of that rally and the official approval in Washington. Two months after that, Bitcoin hit its historical all-time high price above $75,000 on Mar. 15. During that entire five-month span, BTC gained some 170% (for an average annualized ROI of 408%).
But don’t forget: The day the SEC greenlighted the Bitcoin ETFs, it wasn’t retail Bitcoin that rallied. It already had since October on increasingly sure expectations that an approval was right around the corner. It was Ethereum that rallied 17% from Jan. 7 – Jan 11, while Bitcoin pumped 5% over that window.
Markets are now in a similar position with Ethereum that they were in with Bitcoin back in October. If they deliver ETH the same gains they did with BTC, Ether price could sometime in the next 12 months jump to $8,000 from its average price of $3,050 on Sunday, May 19.
Trading meme coins on DeFi networks like Ethereum can be more risky when the market falls and more rewarding when the market rallies. It’s kind of like trading with leverage, but simpler and less risky in some ways than using derivatives contracts, because there’s no debt incurred to get your leverage– just economics and meme power.
One new meme coin, Kai Cat, is currently in presale and has already raised nearly $250,000 in just a few days. Investors looking to make a small bet on bigger gains from the next Ethereum bull run have already moved nearly $250,000 worth of ETH and BNB onto the KAI chain.
Check Out KAI Presale
Stay Connected With KAI On Socials: X | Telegram
