ETHE - Coinbase Says Ethereum ETF Approval More Likely Than You Think— Here's Why | Benzinga
Coinbase Research on Friday released a new report suggesting that the odds of approval for a U.S. spot Ethereum ETF are higher than what the current market pricing indicates.
What Happened: According to the research, prediction market platform Polymarket is pricing in a 16% chance of approval by May 31, 2024, while the Grayscale Ethereum Trust (OTC:ETHE) is trading at a 24% discount to its net asset value (NAV).
However, Coinbase believes the likelihood of approval is closer to 30-40%.
David Han, a research analyst at Coinbase, notes that despite Ethereum‘s (CRYPTO: ETH) underperformance year-to-date, its long-term positioning remains robust.
Han states, “We think Ethereum has the potential to surprise to the upside later in the cycle.”
The approval of spot Bitcoin ETFs in the U.S. has significantly bolstered Bitcoin's store-of-value narrative and its status as a macro asset.
Han points out that a similar approval for Ethereum could unlock new capital inflows, especially given the regulatory clarity such ETFs provide.
“The potential approval of a spot ETH ETF removes impediments, opening up ETH to ...