According to economist Alex Krüger, Ethereum (ETH) has been lagging behind other digital assets due to its size and established presence. However, he believes that the cryptocurrency could experience a surge if spot market ETH exchange-traded funds (ETFs) gain popularity.
ETF Narrative as a Catalyst
Krüger emphasizes that the ETF narrative could drive ETH’s growth. ETFs provide investors with exposure to assets without having to purchase them directly. He believes that the market will increase the probability of approval for spot market ETH ETFs, leading to a surge in ETH’s performance.
SEC’s Role
However, Krüger notes that the approval of an ETH ETF may be hindered by the current SEC Chair, Gary Gensler. Gensler has expressed skepticism towards crypto ETFs. Krüger speculates that if Donald Trump were to win the 2024 presidential election, Gensler would likely step down, potentially paving the way for ETH and other crypto ETFs.
Current Market Situation
At the time of writing, Ethereum is trading at $2,738, showing a 5.3% gain on the day. Krüger believes that the market will continue to support ETH’s recovery in the coming months.
