Ether Spot ETF Approval Would Raise Expectations Solana Could Also Be Classified as a Commodity: Bernstein

As an analyst, I can say that if Trump gets elected in the long term, we anticipate that crypto could experience substantial legislative and regulatory backing, leading to enduring modifications in the way cryptocurrencies are integrated into financial structures. This could potentially result from a new SEC chair who is more favorable towards crypto.

Analysts pointed out that if the Ethereum ETF is approved, it could establish Ethereum as the first non-Bitcoin blockchain asset to be classified as a commodity. This development might encourage other comparable projects, such as Solana, to pursue similar paths.

As a cryptocurrency analyst, I can tell you that the distinction between cryptocurrencies being classified as securities or commodities holds significant consequences. For example, the eligibility of ETF (Exchange Traded Fund) applications depends on the classification of tokens as commodities. In contrast, if they are considered securities, the regulatory oversight by the Securities and Exchange Commission (SEC) becomes more rigorous.

Ether experienced a notable increase in value earlier in the week due to heightened optimism. Two prominent Bloomberg ETF analysts raised their estimates for SEC approval of spot ether ETFs from 25% to 75%. Additionally, reports emerged that the regulatory body had requested applicants to revise their filings, suggesting a greater likelihood of approval. The SEC is slated to make final decisions on several spot ether ETF applications this week, following multiple postponements.

According to Bernstein’s analysis, bitcoin experienced a 75% price surge following the approval of spot Bitcoin Exchange-Traded Funds (ETFs). The expert predicts a comparable price increase for ether. Ether’s unrestricted supply and availability stand out more favorably than bitcoin, as approximately 38% of the cryptocurrency is secured through staking, smart contracts, and layer 2 networks. Furthermore, around two-thirds (66%) of Ethereum’s total supply has not been moved in the past year, according to the report.

As an analyst at Galaxy Digital, I reported on Tuesday that while the Ethereum Ether Trust’s 19b-4 filings are predicted to be approved this week, the S-1 filings for other Ethereum spot Exchange-Traded Funds (ETFs) are unlikely to become effective for several weeks to even months. Consequently, there will be no exchange-tradable Ethereum spot vehicles available until summer.

Should the Securities and Exchange Commission (SEC) give its approval for spot Exchange-Traded Funds (ETFs), Galaxy anticipates their debut on exchanges around July or August. Galaxy further believes that the SEC will likely process and approve all applications concurrently to prevent any specific issuer from gaining an unfair advantage.