Bernstein Signals Prospects for Launching Various Crypto ETFs

Following the SEC’s approval of a spot Bitcoin-ETF, registration of a similar Ethereum-based product won’t be long in coming. Bernstein analysts said, CoinDesk reports.

Experts explained their thesis by the similarity of market structures of instruments based on the first- and second-largest cryptocurrencies by market capitalization.

Potential candidates for further expansion of the crypto-ETF ecosystem include products based on Solana, Polygon and DeFi tokens.

The asset-management industry will have the opportunity to expand its business as the growing asset class takes hold, the experts said.

The US court’s satisfaction with Grayscale Investments’ motion prompted such speculation.

In June, the asset manager filed a lawsuit against the regulator for refusing to convert GBTC into an ETF. The company submitted the application to the SEC for the conversion of the product in October 2021.

The appellate court ordered the Commission to reconsider its decision.

“Crypto ETFs won’t be limited to Bitcoin and will spread to many other digital assets,” — the analysts predicted.

Experts suggested that the regulator would approve the launch of the spot-based exchange-traded fund on digital gold at some point from mid-October to mid-March, with the agency registering all such proposals.

“Results in courts (Ripple and Grayscale over two months), rising odds for an ETF and increasing institutional interest position cryptocurrency for an unprecedented cycle driven by capital. This distinguishes the situation from previous ones that formed retail investors”, — the analysts concluded.

As reported, the Grayscale victory in the case against the SEC prompted Bloomberg analysts to increase the likelihood of launching the bitcoin-ETF in the United States by the end of 2023 to 75%.

Earlier, former SEC Chairman Jay Clayton described the approval of such products as inevitable.