In an interesting turn of events, the U.S. Securities and Exchange Commission (SEC) approved pending Ethereum spot ETF applications last week. This historical development has given rise to commentary on the value and acceptability of the Ether token, particularly among a specific demographic.
If Bitcoin is digital gold, what is Ethereum?
Eric Balchunas, ETF analyst at Bloomberg, took the platform to discuss the chances of success of the Ethereum spot ETF market following the recent approval. The analyst highlighted how the acceptability of the Ethereum token, particularly among investors in the 60-80 age group (baby boomers), could pose a challenge to the performance of investment products.
One way ETF issuers could penetrate the “baby boomer” market, says Balchunas, is by distilling the value or purpose of ETH ETFs into an “easy-to-understand soundbite.” The Bloomberg analyst questioned whether Ethereum had a simple selling point while citing “Bitcoin is digital gold» as an exemplary marketing line that the older generation can resonate with.
Balchunas then asked in his message:
Is there a simple one-liner like that for Ether? If so, what is it?
There were several interesting responses from notable figures in the cryptocurrency industry. Notably, crypto journalist Colin Wu called Ethereum “the Internet Web 3.0”.
Prominent crypto investor and partner at venture capital firm Cinneamhain Ventures, Adam Cochran, also responded by saying, “Ethereum is like digital oil.” Cochran further explained that Ethereum is the gas that powers decentralized protocols.
Staked ETH is like an internet bond.
– Adam Cochran (adamscochran.eth) (@adamscochran) May 24, 2024
Meanwhile, James Check (popularly known as CheckMatey), senior analyst at Glassnode, suggested that Ether does not have a selling point. “Ethereum still has no business case, despite years of trying,” the crypto expert said in a post on.
ETH ETF will pave the way for more funds: TD Cowen
Although it is not clear whether the Ethereum Spot ETF will be successful, these newly approved funds are expected to pave the way for even newer crypto products in the coming year. According to the research team at investment bank TD Cowen, a product containing a “basket of crypto tokens,” perhaps just Bitcoin and Ether or other tokens, could be next in line.
However, the research group noted in its report that the recent approval of the Ethereum spot ETF does not indicate a change in the SEC’s overall stance toward crypto. This was highlighted in President Gary Gensler’s recent statement against the adoption of crypto legislation.
TD Cowen predicts that the SEC will retain its Democratic majority through 2026. “We anticipate that the agency will continue to pursue cases against cryptocurrency trading platforms that trade tokens that the agency considers unregistered securities “. The next ETF coming within a year could be an offering…
-Wu Blockchain (@WuBlockchain) May 26, 2024
“We anticipate that the agency will continue to pursue enforcement actions against cryptocurrency trading platforms that trade tokens that the agency considers to be unregistered securities,” TD Cowen researchers said of the continuation of the Democratic majority of the SEC until 2026.
ETH price hovers around $3,800 on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
