The ETF markets for Bitcoin and Ethereum are projected to reach a value of $450 billion, with an influx of over $100 billion in the next two years, according to Bernstein.
The approval of Ethereum ETFs by the SEC has led to the classification of ETH as a commodity, resolving a major controversy, as per Bernstein.
According to Bernstein, the approval of the Ethereum ETF paves the way for other blockchain assets such as Solana, which could follow the same regulatory precedent.
A recent report from Bernstein suggests that the ETFs for Bitcoin and Ethereum could have a combined market capitalization of $450 billion.
This projection is part of an optimistic forecast for cryptocurrency prices, supported by detailed analysis of the current and future trends of these digital assets.
Influx of Capital in Crypto ETFs
Bernstein predicts that cryptocurrency-focused ETFs will attract over $100 billion in the next two years.
This estimation is based on precise calculations, including investment flows and the performance of cryptocurrencies in the financial markets. Analysts Gautam Chhugani and Mahika Sapra from Bernstein emphasized that this influx of capital would represent significant growth for the crypto ETF industry.
Repercussions of Ethereum ETF Approval
This has positive implications for other blockchain tokens as they could follow the same precedent, and Solana could benefit from it.
The recent approval by the U.S. Securities and Exchange Commission of 19b-4 filings from eight Ethereum Spot ETF issuers has had a notable impact on the market. Following this approval, the price of ETH increased by approximately 26% last week.
This decision also marks an important milestone as Ether would now be classified as a commodity rather than a security, resolving a major controversy surrounding this cryptocurrency.
Bernstein also noted that ETH is the first proof-of-stake-based token to be approved as a spot ETF. This advancement could pave the way for other blockchain assets to evolve from simple token sales to more mature and regulated financial instruments. Furthermore, this development could have positive implications for other tokens such as Solana (SOL), which could benefit from a similar precedent for its own future regulatory approvals. However, several experts, including James Seyffart and the teams at JPMorgan, do not share this view.
