- Swiss bank UBS has launched its first Ethereum-based tokenized fund adding on to the bullish outlook for Ethereum’s ETH.
- The growing institutional interest has led to analysts predicting a potential rally to $6,000.
At the start of this month, Swiss banking giant launched a groundbreaking Ethereum-based investment fund in the world’s second-largest cryptocurrency. This among other factors has seen ETH record a resurgence in its market value.
This comeback has left market gurus speculating whether this new institutional backing could propel ETH’s price higher.
Ethereum’s recent performance has been commendable. This follows a series of downward momentum. A juncture that saw Ethereum underperform more than Bitcoin, the king of crypto, and Solana, a blockchain best known for its high-speed transactions and low fees.
As detailed in our previous report, Ethereum commenced a period of renewed growth late last month.Notably a report by Michael Nadeau, founder of The DeFi Report, revealed that Ethereum has reclaimed 42% of DeFi outflows from Solana.
With a strong performance, ETH at the time of writing is swapping hands for $2,441.33 representing a 0.90% and 1,27% surge in the past 24 hours and month respectively. Picking up on this, Ali Martinez, a prominent crypto analyst, identified a high-reward opportunity for Ethereum, suggesting that ETH’s price structure supports a bullish outlook.
Gathering more than 76k followers, Ali Martinez took to the X platform, setting a bullish and ambitious target of $6000. On the other side, the analyst set a stop-loss below $1800. For ETH to partake in this bullish price roadmap, Ethereum must first overcome the $2,680 resistance.
The risk-to-reward ratio on #Ethereum $ETH is too good to pass up for a long position! I’ve set my stop below $1,880 and am aiming for a target of $6,000. pic.twitter.com/0ZjmGAjq2p
— Ali (@ali_charts) November 4, 2024
Swiss Top Bank UBS Launches Ethereum-Based Fund
ETh’s trajectory is only set to rise with the growing support from institutional investors. UBS, one of the world’s top financial institutions, recently rolled out its first Ethereum-based tokenized fund in Singapore. This UBS USD Money Market Investment Fund Token, known as “uMINT,” is part of UBS’s broader commitment to embracing blockchain technology.
The launch of uMINT comes in the heels of a series of banks and institutional firms tapping into Ethereum’s blockchain for its robustness and security. UBS’s significant move follows previous blockchain initiatives, including a tokenized Variable Capital Company (VCC) fund and a natively issued digital bond settled on a public blockchain.
Ethereum’s progress has not gone unnoticed. Leena ElDeeb, a research analyst at 21Shares, likened Ethereum’s untapped potential to Amazon’s early days. Stating;
Ethereum is “complex, akin to Amazon in the 1990s — promising vast potential but less straightforward in its use cases
Additionally, Federico Brokate, 21Shares’ vice president, noted that just as Amazon grew from an online bookstore to a global tech leader, Ethereum could also expand its reach in ways that we cannot yet imagine, backed by a dedicated talent pool that continues to innovate.
Similarly, Ethereum had a humble beginning in 2015 as a blockchain network supporting smart contracts. However, it now supports decentralized finance (DeFi) applications worth more than $140 billion. Brokate said
