Jun 25, 2024 6:31 pm
Bernstein: Once approved, Ethereum spot ETF will bring similar demand to Bitcoin ETF and gradually attract buyers
Brokerage Bernstein pointed out in a recent research report that once Ethereum spot ETFs are approved for trading, their demand sources may be similar to those of Bitcoin ETFs, but on a smaller scale. Analysts Gautam Chhugani and Mahika Sapra emphasized in the report that due to the lack of Ethereum staking functions, the conversion volume of Ethereum spot ETFs is not expected to be excessive. However, they expect that underlying transactions will gradually attract buyers, thereby maintaining healthy liquidity in the ETF market.
Berstein believes that Ethereum and other digital assets need a more complete regulatory system and expects that the market narrative after the US election will improve as the Republicans' chances of winning increase and Trump now supports cryptocurrencies. Despite the recent correction in the cryptocurrency market, the report emphasizes that "the structural adoption cycle remains intact." (Coindesk)