According to Bloomberg, the hype around cryptocurrency ETFs has shifted from bitcoin to two tokens with relatively smaller market caps, ethereum and Solana.

According to industry executives and other participants, the US Securities and Exchange Commission (SEC) may approve the physical Ethereum ETF before July 4th, at the earliest on July 2nd. The negotiations between asset management companies and regulatory agencies have entered the final stage. At the same time, SEC Chairman Gary Gensler recently revealed that the approval process for physical Ethereum ETF is progressing smoothly.

Eight asset management companies, including BlackRock, VanEck, Franklin Templeton Fund Group, and Grayscale Investments, are seeking approval from the SEC for these Ethereum funds. Most of these companies launched physical Bitcoin ETFs in January this year.

In addition, VanEck has also applied for the first Solana ETF in the United States, indicating that large Wall Street institutions are becoming increasingly interested in other digital currencies.

With the completion of the Bitcoin halving and the decline in the heat of cryptocurrencies, many mining companies have also made big moves and began to accelerate business transformation. Can the cryptocurrency concept sector, which has been quiet for a long time, usher in the next wave of boost?

As the cryptocurrency market continues to slump, can the Ethereum ETF regain funding attention?

As of the time of writing, Bitcoin, Ethereum, and Solana have fallen by about 20%, 18%, and 44% from this year's high, respectively. Since Bitcoin touched a historical high in March, due to the cooling demand for Bitcoin ETFs and the uncertainty of monetary policy expectations, the cryptocurrency market has continued to be sluggish.

The cryptocurrency trading platform, which includes a number of "coin circle concept stocks," has also fallen by about 12% from its high.$Coinbase (COIN.US)$The mining stocks have fallen by more than 30% from their high, and the holding stocks have fallen by more than 20%.$Marathon Digital (MARA.US)$, $CleanSpark (CLSK.US)$The currency stock has fallen more than 30% from its high point.$MicroStrategy (MSTR.US)$Meanwhile, the Bitcoin physical ETF has experienced a large amount of capital outflow. Market statistics show that as of the week of June 21, the Bitcoin physical ETF had a net outflow of funds for two consecutive weeks, with a cumulative scale of nearly 1.3 billion U.S. dollars. This is the largest capital outflow since its approval in January. Among them, Fidelity's Bitcoin fund had the most fund outflows, amounting to 270 million U.S. dollars; Grayscale's fund lost more than 150 million U.S. dollars in funds.

However, the situation has turned around in recent days and the sentiment in the capital market has improved. For example, on June 25th, this ETF received a capital inflow of nearly 80 million US dollars, and Bitcoin hit a low of $58,500 in the intraday and quickly rebounded.

With the prospect of physical Ethereum ETF approval, the cryptocurrency market may also regain more attention. Wall Street generally expects that physical Ethereum ETFs can attract capital equivalent to 15%-20% of physical Bitcoin ETFs, about 2.8 billion U.S. dollars (physical Bitcoin ETFs have accumulated a net inflow of 14.44 billion U.S. dollars).$iShares Bitcoin Trust (IBIT.US)$In fact, many mining companies in the long-dormant cryptocurrency concept stocks are also "quietly" working hard to catch up with the hottest trend of the moment - AI.

"Although the fame of the Ethereum ETF may not be as good as Bitcoin, as a "smaller and faster-growing cryptocurrency asset", Ethereum's price may have greater momentum for upward movement. Moreover, there are large institutions that have "taken the lead" to seize the opportunity. In March, BlackRock tokenized its BlackRock USD Institutional Liquidity Fund with Ethereum, which has accumulated $470 million in assets."

Some analysts believe that although the fame of the ethereum ETF may not be as big as that of bitcoin, as a "smaller-scale, faster-growing crypto asset," the ethereum price may have greater upward momentum. Moreover, some large institutions have already taken the lead in seizing the opportunity. BlackRock tokenized its BlackRock US Dollar Institutional Liquid Fund using ethereum in March, and the fund has accumulated $470 million in assets.

"Flow into the AI field! Cryptocurrency miners welcome their "second spring"."

In fact, many mining companies in the long-silent cryptocurrency concept stocks are also "quietly working hard," and they are quietly catching up with the hottest trend at present-AI.

Among them, the first to emerge in this business transformation is $Core Scientific (CORZ.US)$, which announced a 12-year agreement with cloud provider CoreWeave to provide up to 200 megawatts of power hosting services for CoreWeave's GPU. Core Scientific expects that this transaction will bring the company $3.5 billion in revenue during the contract period. In addition, CoreWeave proposed to acquire Core Scientific for $5.75 per share.$Core Scientific (CORZ.US)$The company has announced a 12-year agreement with cloud provider CoreWeave to provide up to 200 megawatts of electrical utilities for CoreWeave's GPUs. Core Scientific expects the deal to generate $3.5 billion in revenue during the contract period. Additionally, CoreWeave proposed to acquire Core Scientific for $5.75 per share.

Who is CoreWeave? In fact, it was originally a mining company that specialized in mining Ethereum. By the end of 2018, it had deployed over 50,000 GPUs, accounting for over 1% of the Ethereum network's hash rate and was the largest Ethereum miner in North America.

As market competition has become increasingly fierce and influenced by electricity prices, CoreWeave realized that its advantages in the mining field may gradually disappear in the future, so they decided to develop other fields. Later, CoreWeave successfully transformed into a professional GPU cloud provider for AI with a latest valuation of $19 billion.$NVIDIA (NVDA.US)$After successfully transitioning from mining to AI with their 'compute card' CoreWeave, the company has reached a professional GPU provider with a latest valuation of $19 billion.

After this news was announced, Core Scientific, which successfully jumped on the 'AI hype', directly rose by 40%, and has accumulated a 70% increase this year.

Morgan Stanley's analysis believes that this custody agreement has opened up a new road of transformation for bitcoin miners. With this cooperative model, miners are no longer limited to traditional mining businesses, but can also flexibly transform themselves into high-performance computing (HPC) and AI computing hosting centers in order to open up new sources of income.

In addition, due to the Bitcoin halving in April of this year, which reduced miner rewards by 50%, many miners' income, including $Hive Blockchain(HIVE.US)$, $Hut 8(HUT.US)$, $TeraWulf(WULF.US)$, etc., have significantly decreased. As a result, they have been striving to transform into AI.$Bit Digital (BTBT.US)$, $Hive Blockchain (HIVE.US)$, $Hut 8 (HUT.US)$ and $TeraWulf (WULF.US)$Cryptocurrency mining companies have abundant computing resources and power supplies, and these resources are also of great value in the field of AI. Market analysts analyze that this transformation can not only bring new sources of income to mining companies but also reduce their dependence on currency price fluctuations. In the future, cryptocurrency mining stocks that successfully lay out AI may also gain more room for stock price growth.

For example, Hut 8 stated in this year's first quarter report that the company has purchased the first batch of 1,000 NVIDIA GPUs and reached a customer agreement with an AI cloud platform supported by a venture capital firm. Driven by bullish news, the stock has surged over 95% since the financial report was released.

Cryptocurrency mining companies have abundant computing resources and power supplies, and these resources are also of great value in the field of AI. Market analysts believe that this transformation could not only bring new sources of income to mining companies but also reduce their dependence on currency price fluctuations. In the future, cryptocurrency mining stocks that successfully lay out AI may also gain more room for the stock price to rise.

Dear mooers,

What do you think about the impact of the approval of Ethereum ETF?

What opportunities do you think cryptocurrency concept stocks will have next?

Feel free to leave your comments and discussions in the comment section~

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