Ethereum ETF Demand Will Be Less Than Bitcoin, Says Bernstein

The recently approved Ethereum Spot ETF should see much lower demand from investors than its Bitcoin counterpart, Bernstein says. Indeed, the management company released a research report on Monday predicting that the second crypto-based exchange-traded product would see demand on a much smaller scale.

The Ethereum ETF has not yet gone live and the market is eagerly awaiting its arrival. Still, the lack of staking features in the ETH option means less conversion to spot, experts said. Additionally, the state of the market could further decrease interest in the product once it goes live.Source: Wealth Management

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Ether ETF demand must be lower than BTC

In January, the approval of Bitcoin’s Spot ETF was a game-changer for cryptocurrencies. This was a massive catalyst for the leading cryptocurrency to skyrocket to an all-time high of $73,000 three months later. However, analysts do not expect the same to be true for the second digital asset benefiting from the investment product.

According to Bernstein According to analysts, the new Ethereum ETF will not attract the same demand as Bitcoin when it launches. “ETH is not expected to see as many one-time ETH conversions due to the lack of an ETH staking feature in the ETF,” wrote the company’s Gautam Chhugani and Mahika Sapra.Source: Bitcoinist

Read also: After Ethereum ETF, Dogecoin; Solana; And XRP next in line?

Although the product has been approved, there is no timetable for its commercialization. The US Securities and Exchange Commission (SEC) approved a crucial regulatory filing last month, leading to rumors that it could launch in July.

“ETH, as the leading tokenization platform, provides a strong use case, both for stablecoin payments and for tokenizing traditional assets and funds,” Bernstein added. They also stated that an “enhanced regulatory regime” would be beneficial for ETH. Such a change is unlikely to materialize before the looming US presidential election in November.

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