After a strong start to 2024, the crypto market suddenly fell by nearly 20% last month. While it is still well within bull market territory, the recent correction can present a compelling opportunity for investors looking to bolster their exposure.

However, not every crypto is cut from the same cloth. Just because there is a widespread correction doesn't mean just any cryptocurrency is worth your hard-earned money. While a handful could meet this criteria, one in particular stands out from the crowd -- Ethereum (CRYPTO: ETH).

The pending approval of spot Ethereum ETFs

Crypto has come a long way in the last decade and a half, culminating in the recent approval of spot Bitcoin ETFs in January. A spot Bitcoin ETF allows investors to buy and sell shares that represent real Bitcoin (CRYPTO: BTC) on the stock market. Not only does this serve as a de facto stamp of legitimacy, but it also opens up the underlying asset (in this case Bitcoin) to a broader range of investors, specifically those who prefer the regulated environment of traditional financial markets.

So far the spot Bitcoin ETFs have been hit and one of the most successful ETF launches in history. In hopes of snagging the next big thing, attention has shifted to Ethereum.

Currently, there are eight applications under review by the Securities and Exchange Commission (SEC) to grant approval for a spot Ethereum ETF. While these processes can be cumbersome, the consensus is that they will gain approval sometime this month, and in the worst-case scenario, by the end of summer.

Why it matters

The approval of spot Ethereum ETFs will undoubtedly have a significant impact. First and foremost, it will open up Ethereum to new money and buyers, just like we are seeing with spot Bitcoin ETFs. Most evident are institutional investors. Known for their deep pockets, with a regulated and secure way to gain exposure to Ethereum, the expectation is that there will be an influx of institutional capital that can drive up demand and, consequently, the price of Ethereum.

Take a look at Bitcoin for evidence. When Bitcoin ETFs were approved, Bitcoin surged 50% in just three months following approval, showcasing the potential impact on Ethereum.

However, while there's no way to estimate the total influence of spot ETFs in the long term, there is some clear and compelling evidence that could show where Ethereum is headed in the short term.

At the beginning of May, many analysts estimated that the chances of a spot Ethereum ETF being approved were less than 25%. However, things quickly changed just a few weeks later.

On May 20, reports started circulating that the SEC was pivoting and planning on granting approval. In a matter of hours, Ethereum jumped more than 20% from roughly $3,000 to $3,800. Fast forward a month or so, and now Ethereum has fallen victim to the wider cryptocurrency sell-off that occurred, with its price now back down to around $3,100.

You might be able to see where this is going. The ETF approvals are likely a matter of when, not if. When they are approved, it would likely be safe to assume that Ethereum should, at a minimum, rise back up 20%, as this is how the market reacted when initial reports of approval started circulating. While 20% might not be massive in the world of crypto, it is still a commendable return and one that could be just the beginning of a more significant upward trend.

The opportunity at hand

The ETF news is incredibly bullish for Ethereum, not just in the short term but also in the long term. However, this is just one aspect of Ethereum's value proposition.

Ethereum is one of the most proven blockchains with clear utility over the years. It is the primary blockchain of DeFi, one of crypto's most prominent and innovative use cases, with more than 60% of the digital economy calling Ethereum home. Additionally, it has recently attracted the likes of BlackRock, which is pioneering the tokenization of real-world assets on the Ethereum blockchain.

All these factors combined make Ethereum the ideal crypto investment this summer. The pending ETF approvals, coupled with its proven utility and increasing institutional interest, position Ethereum as a standout in the crypto market. Investing in Ethereum now could offer substantial returns as the market recovers and new opportunities arise.

So, while the recent market correction may have caused some hesitation, it's important to see the bigger picture. Ethereum's robust ecosystem, ongoing developments, and potential for ETF approval make it a compelling investment and the ultimate cryptocurrency to buy with $1,000 this summer.

Should you invest $1,000 in Ethereum right now?

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RJ Fulton has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

The Ultimate Cryptocurrency to Buy With $1,000 This Summer was originally published by The Motley Fool