In an interesting turn of events, the United States Securities and Exchange Commission (SEC) last week approved pending ethereum spot ETF applications. This historic development has led to commentary on the value and acceptability of the Ether token, especially among a specific demographic.
If bitcoin is digital gold, what is ethereum?
Bloomberg ETF Analyst Eric Balchunas x.com/EricBalchunas/status/1794023427327533456″ target=”_blank” rel=”noopener nofollow”>took the x 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, especially among investors in the 60-80 age group (baby boomers), could pose a challenge on the performance of investment products.
According to Balchunas, one way ETF issuers could penetrate the baby boomer market is by distilling the value or purpose of eth ETFs into an “easy-to-understand sound bite.” The Bloomberg analyst questioned whether ethereum has a simple sales pitch, citing “bitcoin is digital gold” as an exemplary marketing phrase that the older generation can resonate with.
Balchunas then asked in his post:
Is there a simple phrase like that for Ether? If so, what is it?
There were several interesting responses from notable personalities in the cryptocurrency space. Notably, cryptojournalist Colin Wu called ethereum the “Internet Web 3.0.”
Prominent cryptocurrency 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.
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Staked eth is like an internet link.
– Adam Cochran (adamscochran.eth) (@adamscochran) twitter.com/adamscochran/status/1794024926438932682?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>May 24, 2024
Meanwhile, James Check (popularly known as CheckMatey), lead analyst at Glassnode, suggested that Ether does not have a selling point. “ethereum still doesn't have an elevator pitch, despite years of trying,” crypto expert said in x.com/_Checkmatey_/status/1794115327217094931″ target=”_blank” rel=”noopener nofollow”>a post on x.
eth ETF to clear way for more funds: TD Cowen
While it is unclear whether ethereum spot ETFs will be successful, these newly approved funds are expected to usher in even newer crypto products next year. According to the research team at investment bank TD Cowen, a product containing a “basket of crypto tokens,” possibly 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 cryptocurrencies. This was highlighted in President Gary Gensler's recent statement against the passage of cryptocurrency legislation.
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TD Cowen predicts the SEC will maintain its Democratic majority until 2026. “We expect the agency to continue litigating against cryptocurrency trading platforms that trade tokens that the agency believes are unregistered securities.” The next ETF coming in a year could be a bargain…
– Wu Blockchain (@WuBlockchain) twitter.com/WuBlockchain/status/1794551981102842180?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>May 26, 2024
“We expect the agency to continue litigating against cryptocurrency trading platforms that trade tokens that the agency believes are unregistered securities,” TD Cowen researchers said of the SEC maintaining its Democratic majority through 2026.
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eth price hovers around $3,800 on the daily timeframe | Source: ETHUSDT chart on x/0C3ZFDNB/" target="_blank" rel="noopener nofollow">TradingView
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