Bernstein says Ethereum and Solana are next as Bitcoin dominates financial markets

investing.com:

Brokerage firm Bernstein highlighted a positive medium-term outlook for Ethereum, driven by the potential approval of Ethereum-based exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). 

In a recent research report, Bernstein said that Ethereum's native cryptocurrency, Ether (ETH), stands a big chance of receiving spot ETF approval, becoming the second digital asset to achieve this milestone after Bitcoin.

According to Bernstein, the probability of Ether spot ETF approval by May is about 50%, with a near-certain chance within the next 12 months. This optimistic forecast is buoyed by interest from financial heavyweights like Franklin Templeton, BlackRock (NYSE:BLK), and Fidelity, which have already seen Bitcoin ETFs approved and are now applying for Ether counterparts.

Furthermore, Bernstein's report suggests that other leading blockchain ecosystems like Solana, BNB Chain, Avalanche, Aptos, and SUI could collectively fetch a $1.4 trillion valuation. 

Solana, in particular, is expected to lead in developing consumer-driven applications such as stablecoin payments and gaming.

«We expect Solana to lead the charge of fast throughput blockchains, which offer a more optimum design and user experience for more consumer driven applications i.e stablecoin payments and consumer gaming,» the report reads.

Bernstein analysts also highlighted Ethereum's appeal to mainstream institutional adoption, citing its staking yield dynamics, environmentally friendly design, and the network's capacity to develop new financial markets. The report suggests that the growth of Ether yield markets could lead to fresh ETF designs that incorporate staking yields.

The report further underlines Ethereum's utility beyond