Market analysis firm Bernstein said that the Ethereum spot ETF will see demand at a much lower scale than the Bitcoin spot ETF.
“Investors will see much lower demand for Ethereum spot ETFs than Bitcoin spot ETFs going forward,” Bernstein said in a research report Monday on cryptocurrency ETF investment products.
“ETH as the main platform for many crypto projects is building a strong use case, both for stablecoin payments, as well as tokenizing traditional assets and funds,” Bernstein added. The firm also said that “improved regulatory regimes” would benefit ETH.
However, Bernstein also predicts that an Ethereum spot ETF is unlikely to be approved at this time until the upcoming US presidential election in November.
The Ethereum spot ETF is not yet operational, but investors are eagerly awaiting its arrival to boost the market.
However, some analysts say they are not too optimistic about the Ethereum spot ETF, especially at this point in time, when the market’s gloomy state could further dampen interest in the Ethereum spot ETF when it goes live.
In January 2024, SEC approval Bitcoin Spot ETF changed the game for cryptocurrencies. It was a major catalyst for the overall crypto market recovery and BTC price skyrocketed to an all-time high of $73,000 just three months later. However, analysts do not expect the same to happen with the Ethereum spot ETF.
According to Bernstein analysts, the Ethereum spot ETF will not attract the same demand as the Bitcoin ETF when it launches.
“ETH will not see much ETH spot conversion due to the lack of ETH staking feature in the ETF,” Bernstein analysts Gautam Chhugani and Mahika Sapra wrote.
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