Bernstein predicts that the spot Ether ETF approval by the US SEC is lifting expectations for Solana earning commodity status. Bernstein’s Tuesday, May 21 report indicated that the spot Ether ETF approval by the Securities and Exchange Commission (SEC) would set a precedent for non-bitcoin cryptos such as Solana earning commodity status.
Bernstein Anticipate Solana to Secure Commodity Status
Bernstein’s report considers that the approval of the spot ether exchange-traded fund (ETF) will bode well for rival altcoins such as Solana. The report adds that Donald Trump’s win in the upcoming November 4 election would yield a crypto-friendly administration.
Crypto firm Galaxy Digital considers the spot ETH ETF approval a protracted process that could drag on for several months. Broker Bernstein highlighted in his Tuesday research that approving spot Ether ETF will signal a regulatory relief for the digital assets sector.
The Bernstein report demonstrates that approving the spot Ether ETH stimulates expectations for Solana (SOL) categorization as a commodity.
The report conveyed to the clients several days before the SEC’s final decision on the ETH ETF applications considers that the Biden administration is likely to soften its stance on crypto before the November 4 polls. The report singled out potential Trump victory as the start of broad positivity.
Altcoins Hinge on Spot Ether ETF Approval
Bernstein analysts Mahika Sapra and Gautam Chhugani reiterated that the Trump election will give crypto critical legislative support. Besides, the agency support under a new SEC chair will help roll out lasting structural changes in the digital assets space.
The Bernstein analysts add that tactically, other altcoins could embrace the Ethereum ETF approval as a precedent for garnering a commodity status.
Bernstein considers crypto’s definitive classification as either commodity or security, which yields far-reaching implications. The ETF applications and approval for altcoins hinge on the tokens realizing commodities classification.
Bernstein’s report considers security categorization as the basis of facing the stringent regulatory oversight by the Gary Gensler-chaired SEC. The report coincides with the optimism that the SEC will approve the bids for spot Ether ETFs after Bloomberg ETF analysts revised odds to 75%.
The upgrade in the approval odds from 25% sparked an unprecedented surge in Ether, with the reports indicating the regulator suddenly obligated applicants to amend filings. The communication by the SEC signaled it would likely approve the spot Ether ETF applications. Bernstein acknowledged that the securities watchdog had several deadlines approaching to decide on the applications after the delay on several occasions.
Ethereum to Rally Following Spot ETH ETF Approval
Bernstein observes that the approval of spot Bitcoin ETFs triggered a 75% rally in the lead token, an occurrence that Ether is set to replicate.
The report considers the free float and ETH supply more appealing than Bitcoin. In particular, 38% of the ETH is within staking, layer -2 chains, and smart contracts, though 66% of Ether supply has yet to move for the past year.
Galaxy Digital research executive Alex Thorn indicated that though the SEC will likely approve the 19b-4s filings, it would take longer to approve the S-1 filings. The delay in S-1s approval would yield non-exchange-tradable ETH ETFs until the summer.
Galaxy speculates that approving the Spot ETFs would avert granting a head start to several issuers.
SureTradeGroup.com is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site is paid content that is not written or posted by our writers or editors and the opinions expressed do not reflect the opinions of this website. Any disagreement you may have with brands or companies mentioned in articles will need to be taken care of directly with those specific brands and companies. The responsibility of anyone who may click links in our articles and ultimately sign up for that product or service is their own. Forex, Stocks, Cryptocurrencies, NFTs and Dogital Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.