Bernstein: Demand for Ethereum Spot ETFs May Be Low

According to a research report released by brokerage firm Bernstein on Monday, the demand for Ethereum spot ETFs, once approved for trading, may be similar to that 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 functionality, the conversion volume of Ethereum spot ETFs is not expected to be significant. However, they expect that underlying trading will gradually attract buyers, thus maintaining a healthy liquidity in the ETF market. The underlying trading strategy involves simultaneously buying spot ETFs and selling futures contracts, waiting for price convergence. The report also points out that Ethereum, as the main tokenization platform, is establishing strong use cases for stablecoin payments and the tokenization of traditional asset funds. Bernstein believes that Ethereum and other digital assets need more comprehensive regulatory systems, and expects that the market narrative after the US election will improve as the Republican Party's chances of winning increase and President Trump now supports cryptocurrencies. Despite the recent correction in the cryptocurrency market, the report emphasizes that "the structural adoption cycle is still intact".