ETHE - ETHE: ETF Euphoria To Drive ETH Closer To ATHs Amid Staking Concerns

2024-06-04 09:04:15 ET

Summary

• Ethereum has been trailing behind Bitcoin in terms of performance this year after recent SEC approvals for Bitcoin ETFs.
• The SEC's recent amendment of rules for listing Ethereum ETFs has significantly increased the likelihood of the ETFs securing approvals and trading on US exchanges.
• The demand for Ethereum and the ETHE fund is expected to increase in a diminished supply environment, potentially leading to a rally and a retest of all-time highs.
• The exclusion of staked Ethereum from the ETFs creates some level of uncertainty, but the optimism will outweigh the uncertainty for now.

Investment Thesis

While Bitcoin ( BTC- USD) has been a big beneficiary in the wake of the SEC's approvals on bitcoin etfs, its altcoin peer, Ethereum ( ETH-USD ), has been trailing in relative performance so far this year, as seen in the chart below....

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