This is what to expect from Ethereum during the bull run – BLOX

The upward trajectory is well underway and prices are rising and falling. Despite all the noise and misery, things remain quiet at the top of the food chain. Bitcoin and Ethereum are, as always, the most valuable currencies. In this article we will talk about Ethereum, and what you can expect in the short term.

We are not only discussing bullish developments, there is also something worrying.

Ethereum transaction costs are declining

Ethereum competes with Solana, Cardano, and many other enterprise competitors. By companies we mean decentralized exchanges, challenge platforms, smart contracts, metaverses, providers of NFTs, and second layers.

You might say, choose Ethereum, which is the largest blockchain and therefore reliable. But when choosing a blockchain, it is also important that transactions are fast and cheap. For a long time, Ethereum lagged behind its competitors, but that changed on March 13.

Then the Dencun upgrade was launched on the Ethereum network. We won't bore you with the technical details, but we do know that this has fundamentally resulted in cheaper transactions.

In the short term, layer 2 protocols in particular will benefit from this (such as Matic), and this in turn will ensure that Ethereum remains a popular blockchain.

Ethereum ETF has an 85% chance

Many Wall Street firms want to launch an ETF. Wealth giant BlackRock is one of them. This means that there is a real opportunity for an exchange-traded fund to emerge. BlackRock has such a big hand in the pie, it knows enough of the regulators to make that happen.

An analysis by My Betting Edge predicts a whopping 85% chance that these ETFs will get the green light from the US Financial Regulatory Commission (SEC) in May. SEC stands for Security and Exchange Commission, and they are responsible for enforcing security rules. Legally, the ETF will act as a legal security.

SEC investigating Ethereum during bull run

In line with this, the SEC says that an ETF is not just a security, but they are investigating whether Ethereum itself is a security.

If research shows that Ethereum is a security, the chance of an ETF existing is slim. Ether must also comply with all rules and laws, and this could set a precedent for other cryptocurrencies.

Major players in the cryptocurrency world disagree with the Securities and Exchange Commission. They believe that Ethereum is not a security, but rather a commodity.

Classifying Ethereum as a “commodity” has serious consequences. Unlike securities, which are regulated by the Securities and Exchange Commission, commodities fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC).

This difference in supervision has important implications for the security and regulation of Ethereum. The Commodity Futures Trading Commission (CFTC) has a long track record of regulating complex financial instruments, while the Securities and Exchange Commission (SEC) has been criticized for its over-enforcement of crypto securities laws.