The approval progress of 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.
Which Ethereum ecosystem is worth paying attention to?
Layer2
LSD
DeFi
Stablecoin protocols based on ETH collateral
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 versions of the S-1 registration application documents. Once approved by the SEC, the Ethereum spot ETF will be open for trading.
Regarding the latest progress, Nate Geraci, President of The ETF Store, stated today that the revised S-1 application submission ended on the 8th, and it is currently unclear how quickly the SEC will process it. However, he believes that the Ethereum spot ETF is expected to be launched next week or within two weeks.
Bloomberg analyst James Seyffart previously predicted that the Ethereum spot ETF may 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 up to $5 billion. Currently, the ETH/BTC ratio is approaching a multi-year low, and strong capital inflows may trigger a price surge. 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 approval of the Ethereum spot ETF, if funds continue to flow in, Ethereum ecosystem projects are expected to benefit. Therefore, it is important to focus on several major 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, the recent 30-day decline in Layer2 ecosystem tokens ranges from 25% to 50%.
Performance of Layer2 tokens. Image source: CoinGecko
LSD protocol is a node-related staking service that emerged after ETH transitioned from POW to POS. Major projects include LDO, SSV, RPL, FXS, etc. According to Coingecko data, the recent 30-day decline in LSD ecosystem tokens ranges from 25% to 50%.
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, the recent 30-day decline in DeFi ecosystem tokens ranges from 15% to 40%.
Performance of DeFi tokens. Image source: CoinGecko
There are various ways to issue stablecoins, one of which is asset-backed issuance. The largest collateral asset includes ETH. With LSD and re-staking, project parties use the staked ETH to obtain liquidity income, which naturally creates a dividend yield for stablecoins. Major projects include ENA, LBR, etc. However, ENA has recently experienced a 60% decline in the past 30 days.
Performance of ENA tokens. Image source: CoinGecko
Re-staking refers to re-pledging assets after the initial pledge. Re-staking has become one of the mainstream DeFi applications on Ethereum. Major projects include REZ, ETHFI, ALT, BB, etc. According to Coingecko data, the recent 30-day performance of DeFi ecosystem tokens has been brutal, with declines ranging from 40% to 60%.
Performance of re-staking tokens. Image source: CoinGecko
The approval of Ethereum ETF could bring huge development opportunities to the Ethereum ecosystem. The above-mentioned projects are just a part of it, and there are many other potential projects worth paying attention to. Please stay tuned to market dynamics and make investment decisions based on your own risk tolerance.
Related reports
Bloomberg: Ethereum spot ETF listing delayed until July 8th; SEC requests issuers to amend S-1 documents.
Reuters is also optimistic: Ethereum spot ETF could be listed as early as July 4th, bringing in how much new capital?
Is the Ethereum spot ETF topic lackluster? Andrew Kang: Price may drop to $2,400 after approval.