Ethereum ETF goes live – Which Ethereum-related cryptos will surge?
With the new Ethereum ETF launched investors are speculating that it will perform at least as well as the Bitcoin ETF did earlier this year, adding tens of billions of dollars of institutional capital to the second-largest cryptocurrency’s market value.
As a result, investors are exploring ways to make the most of Ethereum’s expected price increases to amplify their returns.
Sean Sanders, is a CFA Charterholder and CEO of investment platform Altify (FSP No. 53289), backed by JSE-listed Sabvest.
He comments, “This is the most significant investment-related event in Ethereum’s seven-year history, allowing institutional investors to buy Ethereum’s native token, ether (ETH), through traditional brokerage accounts.
Such a move should result in greater buying pressure, potentially driving up the price of ether as we saw with Bitcoin’s ETF launch.”
He continues, “For strategic investors or traders looking to benefit from any price increases following the ETF launch, you have a couple of options. One straightforward approach is purchasing ETH directly on secure, regulated crypto investment platforms like Altify.
Alternatively, for those seeking higher returns — known as leveraged returns — you might consider investing in cryptocurrencies directly linked to Ethereum. These are referred to as ‘ETH Beta Cryptocurrencies.’
What Are ETH Beta Cryptocurrencies?
You can think of Ethereum like your phone’s app store, but instead of engaging with regular apps that are created and managed by traditional businesses, Ethereum lets you engage with a variety of decentralised apps built on its own blockchain technology – these apps are ‘ETH betas’.
The logic is straightforward, Ethereum becomes more valuable as more ETH is bought than sold, when capital is allocated to the ETH ETF.
Projects built on the Ethereum blockchain — known as ETH Beta Cryptocurrencies — benefit even more than ETH itself because they are directly linked to Ethereum’s success.
As Ethereum grows and develops, these projects often see amplified gains in their valuations, riding the wave of Ethereum’s increasing adoption. This interconnection means that as Ethereum thrives, so do these projects, potentially offering higher returns than investing in ETH alone.
Sophisticated investors and traders often use these ‘ETH betas’ to amplify gains from Ethereum’s price movements because they typically follow Ethereum’s price movements but with greater intensity. For instance, if Ethereum’s price climbs by 1%, these assets might jump by 2%, 3%, or more.
Conversely, they tend to fall more sharply when Ethereum’s price drops, presenting a higher risk but offering the potential for greater returns.
Choosing The Best ETH Beta
You need to consider two things when deciding which ETH Beta to invest in.
- Return: Does the ETH Beta deliver returns greater than ETH?
- Fundamental Value: One of the easiest ways to decide if an ETH beta has value is by asking ‘Does it make money?’ Revenues generated by a protocol therefore show value creation.
Returns: Which ETH Beta Performed The Best?
The chart below shows last year’s performance of 14 of the most prominent ETH Beta cryptocurrencies.
Out of the 14 ETH Beta cryptocurrencies, 6 of them outperformed Ethereum (+79%) and exhibited leveraged returns.
While higher returns are attractive, you need to also consider fundamentals and project longevity when assessing the best ETH beta cryptocurrencies.
One of the best ways to do this is to evaluate the user adoption and related revenues generated for each crypto project listed above.
Fundamental Value: Which ETH Beta Makes The Most Revenue?
The chart below depicts last year’s revenue for the 6 cryptocurrencies that outperformed Ethereum (ETH).
Buy Maker on Altify with zero buy fees
It’s clear that among the top six performing ETH beta assets, Maker (MKR) stands out distinctly, boasting protocol revenues 18x greater than its closest rival.
While PEPE and PENDLE might have yielded higher percentage returns than MKR over the past year, their individual revenues are significantly less.
Which is The Top ETH Beta Cryptocurrency?
Based on performance, risk, and revenue, Maker (MKR) emerges as a top pick as an ETH beta cryptocurrency.
- Beta Returns: MKR has delivered returns 2.70 times greater than those of ETH.
- Beta Revenue: MKR’S revenue surpasses that of PENDLE by 50 times, whereas PEPE has generated no revenue.
What is Maker (MKR)?
Maker is a leading player in the decentralised finance (DeFi) and real-world asset (RWA) tokenisation sectors.
It launched in 2017 as a permissionless credit system allowing users to obtain stablecoin loans in its native Dai stablecoin, which is backed by collateral on the Ethereum blockchain.
Maker has evolved into one of the leading blockchain banking protocols.
It now functions like a futuristic bank, providing loans backed by cryptocurrencies or real-world assets (RWAs) and offering savings products similar to those of a traditional USD savings account.
Maker is at the forefront of innovation, aiming to dominate the real-world asset tokenisation field.
This evolution positions Maker as a pivotal bridge connecting cryptocurrency with tangible, everyday assets, leading the charge in shaping the future of finance.
Buy Maker on Altify with zero buy fees
Where Can I Buy ETH Beta’s like MKR, PENDLE or PEPE in South Africa?
Locally regulated investment platform Altify (FSP No. 53289), backed by JSE-listed Sabvest, offers one of the most diverse ranges of ETH beta cryptos in South Africa. With the likes of MKR, PENDLE, PEPE, LDO, ENA, UNI and 30+ more cryptocurrencies can be accessed.
Altify is your one-stop shop to take advantage of the ETH ETF price movements.
Plus, to celebrate the launch of Maker on Altify, we’re offering zero buy fees until the 1st of August 2024. View Altify’s fee-free promotional terms here.
Altify’s mobile app is user-friendly, with no signup or monthly fees, and allows you to start investing with as little as R150.
Altify also offers over 30 cryptocurrencies and 13 ETF-style Crypto Bundles, providing diversified exposure to the broader crypto market or specific niche sectors through a single investment.
These Crypto Bundles are automatically updated every month, keeping your holdings current with the rapidly evolving crypto market.
Disclaimer
This article is provided solely for informational purposes. The opinions expressed herein do not constitute investment advice or recommendations, nor should they be regarded as such. This document does not represent an offer to buy or sell, or a solicitation of an offer to buy or sell, any of the crypto assets mentioned.
Altify operates as a brokerage service facilitating the reception and transmission of crypto asset orders, without providing investment advice or personalised recommendations. While Altify advocates for the broader accessibility of cryptocurrencies, they may not be suitable for every investor.
It is important to consider your investment goals, experience level, and seek independent financial advice where necessary. Altify strongly recommends conducting comprehensive research before investing in cryptocurrencies.
Investors are solely responsible for their investment decisions. Considering the high volatility associated with cryptocurrencies, please evaluate your financial circumstances carefully before engaging in transactions. Cryptocurrencies carry a high risk, with potential for both significant gains and losses. Investing in cryptocurrencies may lead to a total loss of capital.
Past performance is not indicative of future results, and returns cannot be guaranteed as cryptocurrency values fluctuate based on market supply and demand. Do not invest more than you can afford to lose and seek professional guidance if you are unsure about the suitability of a cryptocurrency investment for your specific situation.
Please refer to the General Risk Disclosures and Crypto Risk Disclosures on Altify’s website for more information. Investments should only be undertaken by individuals who fully understand these risks.
For additional details, please visit www.altify.app
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