VALUE PROPOSITION

LVMH IS BEATEN BY ETHEREUM IN MARKET CAP

Ethereum rocketed 22% higher on Tuesday on surging confidence that ETFs pegged to the cryptocurrency could be approved as soon as this week, pushing its market cap above $455 billion. Meanwhile, shares of the biggest company in fashion, LVMH, are down 1.5% this week, with its market cap at $417 billion.

Similar to efforts made for Bitcoin in January, there have been ongoing initiatives to establish an Ethereum spot exchange-traded fund (ETF), which would make the cryptocurrency accessible to a wider range of investors.

Despite anticipated regulatory pushback, the Securities and Exchange Commission (SEC) recently asked potential issuers to update their filings, Bloomberg reported. This is a positive sign ahead of decision deadlines for at least two spot ETFs, one from VanEck and the other from Ark 21Shares.

According to Bloomberg Intelligence ETF analyst Eric Balchunas, the odds of approval jumped from 25% to 75% in a single day on Monday. Additionally, the odds of approval by May 31 have risen to 61% from 10% on the Polymarket betting platform.

Ethereum surged over 18% after Balchunas noted that the SEC likely faced political pressure, as its previous position showed little engagement with ETF applicants.
CRYPTO