Investors are searching for the next big thing now that Bitcoin (BTC-USD) ETFs have been approved by the SEC in early January. The next obvious target is Ethereum ETF, which is expected to receive SEC approval in late May. 

Officials at Standard Chartered Bank expect pending applications to be approved on May 23. Investors are beginning to position themselves to take advantage of expected rapid returns due to that approval.

A simple investment strategy is often the strongest strategy. In this case, that continues to hold true. Investors can easily position themselves to maximize returns on Ethereum (ETH-USD) ETFs today. Let’s take a look at three simple positions to establish in order to do so.

Ethereum (ETH-USD)

Investing in Ethereum is an obvious choice at the moment. Again, simple investments often lead to the strongest performance. Bitcoin’s performance in the lead-up to spot Bitcoin ETF approval will serve as an excellent example for investors considering Ethereum. 

Prices surged upward in the days before the January 10 approval thereof. There was a subsequent sell-off to secure returns in the days following approval. It is expected that May 23 will be very similar to January 10.

Geoffrey Kendrick heads Standard Chartered Bank’s forex and digital asset research team. He wrote in a recent research note that he believes ETH prices could rise to $4,000 by that date. The SEC has not stated any belief that Ethereum is a security. That is a major factor in its decision calculus. The SEC treats Bitcoin as a commodity which was a major factor in its decision to allow spot Bitcoin ETFs.

Should Ethereum prices rise to $4,000 in the days prior to May 23, it would imply 70% returns from the time of writing.

Storj (STORJ-USD)

Storj (STORJ-USD) is another cryptocurrency that investors should pay attention to because it is highly related to Ethereum overall. This one is interesting because of a few important factors including data, the decentralization thereof and Cloud storage.

Data is becoming increasingly important in the age of artificial intelligence. More data is being produced as a result of increasing demands overall. But what’s really important in the age of decentralization and data is that Storj further decentralizes data. The project is based on the Ethereum blockchain, and is one that could logically rise with Ethereum’s price.

The project is really about cloud storage and rather than using a large centralized data center, it separates that function into many more nodes. Individuals can participate in Storj by installing Tardigrade, which is part of Storj. If you have excess file space that you would like to monetize, Storj is a solution.

Team members recently sold more than $1.4 million worth of Storj. Prices fell by more than 5%. It is a concern to keep apprised of, but not one to be too concerned about.

Bitcoin (BTC-USD)

Bitcoin and Ethereum are highly correlated. Usually, as one goes, so goes the other. Thus, as Ethereum rises moving toward May 23, so too should Bitcoin. 

That said, the correlation between the two has weakened over time. One benefit of the slight decline in correlation is that holding both Ethereum and Bitcoin together offers greater diversification now. 

Bitcoin itself is increasingly correlated with the performance of the Nasdaq. The tech-heavy index is expected to rise this year in particular due to the continued emergence of artificial intelligence. In turn, it is likely to also help to pull ETH higher in price. It’s logical to assume that the two could create some sort of positive feedback loop that pulls both higher. 

Further, the two leading cryptocurrencies are increasingly becoming a part of the established financial system. While that may cause worries over a decrease in decentralization it could also lead to an influx of liquidity to the further normalization of crypto. Ethereum ETF approval will strengthen that cycle overall. 

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.