Before the ETH spot ETF is launched, which Tokens can be traded?

After the Securities and Exchange Commission (SEC) of the United States approved the 8 ETH Spot ETF 19b-4 exchange rule change documents in May, major issuers have also successively submitted updated versions of the S-1 registration application. Once approved by the SEC, the ETH Spot ETF will be open for trading.

Regarding the latest progress, Nate Geraci, President of The ETF Store, stated today (8th) that the revised S-1 application has been submitted and the SEC’s handling process is not clear yet, but he is optimistic that the Ethereum Spot ETF is expected to be launched next week or within two weeks.

Bloomberg analyst James Seyffart previously predicted that the ETH Spot ETF may be listed later this week, or during the week of July 15th.

Gemini estimates in its latest research report that if the United States approves an Ethereum Spot ETF, net inflows in the first 6 months could reach as high as $5 billion. Currently, the ETH/BTC ratio is close to multi-year lows, and strong capital inflows may trigger a pump in prices. If the ETH/BTC ratio returns to the median of the past 3 years, ETH could pump nearly 20%, and if it reaches its maximum value of 0.087, it could pump as much as 55%. 01928374656574839201

Which Ethereum ecosystems are worth following?

After the Spot ETF on Ethereum is successfully approved, if funds continue to flow in, the Ethereum ecosystem projects are expected to benefit. Therefore, it is important to follow the major areas and projects in the Ethereum ecosystem, and the following will take stock for the readers.

Layer2

Layer2 aims to take on the prosperity of the ETH ecosystem with high TPS and low gas. Its importance is self-evident. Major projects include MATIC, MNT, ARB, STX, IMX, OP, STRK, ZK, AEVO, MANTA, BLAST, and more. According to Coingecko data, the recent 30-day decline of Layer2 ecosystem tokens ranges from 25% to 50%.

Layer2 Token performance. Source: CoinGecko

LSD

LSD protocol is a Node-related stake service for ETH after the transition from POW to POS, with main projects including LDO, SSV, RPL, FXS, etc. According to Coingecko data, the recent 30-day decline of LSD ecosystem Token varies from 25% to 50%.

LSD Token performance. Image source: CoinGecko

Decentralized Finance

Decentralized Finance applications cover Dex, lending, stablecoin trading, stablecoin issuance, long other aspects, with major projects including Pendle, UNI, AAVE, COMP, CRV, MKR, etc. According to Coingecko data, the recent 30-day decline in the Decentralized Finance ecosystem tokens ranges from 15% to 40%.

Decentralized Finance Token performance. Image source: CoinGecko

Based on ETH collateralized stablecoin protocol

There are multiple ways to issue Stable Coins, one of which is asset issuance. The largest collateralized asset includes ETH. After obtaining LSD and staking, the project party will use the collateralized ETH to obtain liquidity income. Stable Coins have a natural yield. The main projects include ENA, LBR, etc. However, ENA has recently fallen by as much as 60% in the past 30 days.

ENA Token performance. Image source: CoinGecko

Stake again

Re-stake refers to staking assets again after the initial stake. Re-stake has become one of the mainstream Decentralized Finance applications on the Ethereum network, with main projects including REZ, ETHFI, ALT, BB, etc. According to Coingecko data, decentralized finance ecosystem tokens have recently experienced a sharp decline, ranging from 40% to 60%.

More stakeToken performance. Source: CoinGecko

The adoption of ETFs may bring great development opportunities to the Ethereum ecosystem. The above project is just one of them, and there are many other promising projects worth following. Please keep an eye on the market trends and make investment decisions based on your own risk tolerance.