The approval progress of the Ethereum spot ETF seems to have entered the final stage. Nate Geraci, President of The ETF Store, stated today that he expects the Ethereum spot ETF to be launched next week or within two weeks. It is expected to benefit the Ethereum ecosystem. Here is a list of potential Ethereum-related tokens for readers to consider.
Index:
Which Ethereum Ecosystems are Worth Paying Attention to?
Layer2
LSD
DeFi
Stablecoin Protocols Based on ETH Collateralization
Re-Staking
After the US Securities and Exchange Commission (SEC) approved the 19b-4 exchange rule change documents for 8 Ethereum spot ETFs in May, major issuers have also submitted updated S-1 registration application documents. Once approved by the SEC, the Ethereum spot ETF will be available for trading.
Regarding the latest progress, Nate Geraci, President of The ETF Store, stated that the revised S-1 application submission deadline was on the 8th, and it is currently unclear how quickly the SEC will process it. However, he is optimistic that the Ethereum spot ETF will be launched next week or within two weeks.
Earlier, Bloomberg analyst James Seyffart predicted that the Ethereum spot ETF could be listed later this week or during the week of July 15th.
Gemini estimated in its latest research report that once the US approves the Ethereum spot ETF, the net inflow in the first six months could reach as high as $5 billion. The current ETH/BTC ratio is close to a multi-year low, and strong capital inflows may trigger a rebound. If the ETH/BTC ratio returns to the median of the past three years, ETH could rise by nearly 20%. If it reaches the maximum value of 0.087, it could rise by 55%.
After the smooth passage of the Ethereum spot ETF, if the funds continue to flow in, Ethereum ecosystem projects are expected to benefit. Therefore, it is important to pay attention to several key areas and projects in the Ethereum ecosystem. The following is a list for readers:
Layer2 aims to support the prosperity of the Ethereum ecosystem with high TPS and low GAS. Major projects include MATIC, MNT, ARB, STX, IMX, OP, STRK, ZK, AEVO, MANTA, BLAST, etc. According to Coingecko data, Layer2 ecosystem tokens have experienced a decline of 25% to 50% in the past 30 days.
Performance of Layer2 tokens. Image source: CoinGecko
LSD protocol is a node-related staking service that appeared after Ethereum transitioned from POW to POS. Major projects include LDO, SSV, RPL, FXS, etc. According to Coingecko data, LSD ecosystem tokens have experienced a decline of 25% to 50% in the past 30 days.
Performance of LSD tokens. Image source: CoinGecko
DeFi applications cover multiple aspects such as Dex, lending, stablecoin trading, stablecoin issuance, etc. Major projects include Pendle, UNI, AAVE, COMP, CRV, MKR, etc. According to Coingecko data, DeFi ecosystem tokens have experienced a decline of 15% to 40% in the past 30 days.
Performance of DeFi tokens. Image source: CoinGecko
There are various ways to issue stablecoins, one of which is asset collateralization. The largest collateral asset is ETH. With the introduction of LSD and re-staking, project parties can use the collateralized ETH to obtain liquidity income, resulting in natural yields for stablecoins. Major projects include ENA, LBR, etc. However, ENA has experienced a decline of 60% in the past 30 days.
Performance of ENA tokens. Image source: CoinGecko
Re-staking refers to re-pledging assets after the initial pledge. It has become one of the mainstream DeFi applications on Ethereum. Major projects include REZ, ETHFI, ALT, BB, etc. According to Coingecko data, DeFi ecosystem tokens have experienced a drastic decline of 40% to 60% in the past 30 days.
Performance of re-staking tokens. Image source: CoinGecko
The approval of the Ethereum ETF could bring tremendous development opportunities to the Ethereum ecosystem. The above-mentioned projects are just a part of it, and there are many other promising projects worth paying attention to. Please stay tuned to the market trends and make investment decisions based on your risk tolerance.
Related Reports
Bloomberg: Ethereum Spot ETF Listing Delayed Until July 8th; SEC Requires Issuers to Amend S-1 Documents
Reuters Also Optimistic: Ethereum Spot ETF Could be Listed as Early as July 4th, How Much New Capital Can It Bring?
Is the Ethereum Spot ETF Topic Weak? Andrew Kang: Price Could Drop to $2,400 After Approval