Buy low… sell high.
That’s what everyone says is the secret to investing… right?
Well… in the case of the highflying crypto market… it’s wrong.
The world’s second-largest cryptocurrency – Ethereum (ETH) – got a huge boost on May 20… when the SEC approved the first Ethereum spot ETFs. The flurry of speculation ahead of the news caused the crypto’s price to surge 20% in a single day.
As someone who’s owned Ethereum since 2017 and still holds it at a cost basis of under $450, I was obviously thrilled by the news… especially since Ethereum’s price has more than doubled over the past year.
But does that mean it’s too late to get in?
Hardly.
The Ethereum ETF approval is just the start. Ethereum could double again over the next year… for three reasons.
Ethereum Spot ETFs Approved
When the spot Bitcoin ETFs were approved, the real rally didn’t start until the ETFs started trading and institutional money started flowing into the ETF.
It’s true Bitcoin rallied heavily into the announcement… but the cryptocurrency still surged from $46,000 to as high as $72,000 in the months after the ETF started trading.
If we see something similar with Ethereum, that would imply a target price of nearly $6,000 – a new all-time high.
But it’s not the only reason to be optimistic about Ethereum in the short term.
Institutional Adoption Is Coming
According to a recent report by wealth management firm Bernstein, institutional clients view Ethereum as much more than a digital asset. The network also supports…
- Smart contract utility
- Staking yield dynamics
- And scalability and security.
The “staking” market alone is currently valued at $90 billion… as the network offers sustainable yields between 3.5% and 5%.
Put simply, staking is a way to earn rewards by parking or staking your crypto on the blockchain. Think of it like being paid dividends for buying and holding a stock.
This “staking” market could attract more institutional investment if included in the ETF structure, further solidifying Ethereum’s position in the financial ecosystem.
The Dawn of a New Financial System
Many institutional players see a huge opportunity. They’re not just looking to launch ETFs. They are aiming to build more financial markets on the Ethereum network.
For instance, institutions could build…
- Decentralized exchanges (DEXs) that facilitate trading without intermediaries…
- Lending platforms that offer more accessible credit option…
- And tokenized assets that represent traditional financial instruments like stocks or bonds.
These innovations can streamline processes, reduce costs and increase transparency… fundamentally altering how financial markets operate.
Some legacy financial institutions have already started working on this transformation…
- JPMorgan has developed its own blockchain platform, Quorum, which is based on Ethereum.
- The company has also launched the JPM Coin to facilitate instant payments between institutional clients.
- Banco Santander issued a $20 million bond using the Ethereum blockchain to enhance transparency and efficiency in the bond issuance process.
These steps indicate a significant shift as traditional financial institutions begin to embrace the capabilities of blockchain technology to modernize and innovate their services.
The Time to Act Is Now
The cryptocurrency market may be foreign to many investors.
But my analysis shows we are in the midst of a major bull market… and it could be the last one we ever see. Crypto is one of the only markets in which you can reliably turn a little bit of money into a lot of money.
Ethereum is one of the most obvious ways to play it. Even if we only had the Ethereum ETF catalyst, the response to Bitcoin’s ETF launch shows the cryptocurrency could easily double from current levels.
— Robert Ross
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Source: Total Wealth