Bernstein analysts from the brokerage firm have suggested that U.S. spot ethereum exchange-traded funds (ETFs) may not generate the same level of interest as bitcoin ETFs did this year. They believe that the absence of staking could lead to lower demand for spot conversion.
Despite the anticipation surrounding the launch of spot ethereum ETFs, Bernstein, also known as Alliancebernstein, has expressed skepticism about their potential. Analysts Gautam Chhugani and Mahika Sapra pointed out that the lack of an ETH staking feature in the ETF could hinder spot ethereum conversion.
This news comes as the market eagerly awaits the launch of these funds in July, with fund managers preparing their S-1 filings. The transition of the Grayscale Ethereum Trust (ETHE) from an over-the-counter (OTC) traded fund to a publicly traded ETF is also anticipated. Currently, Grayscale’s ETHE has a 1.41% discount to net asset value (NAV), which may result in fund outflows.
Despite the recent market downturn, Bernstein analysts maintain that the “structural adoption cycle remains intact.” They also highlighted the increasing significance of tokenization on the Ethereum network, stating that Ethereum as a primary tokenization platform is establishing a strong use-case for stablecoin payments and tokenization of traditional assets and funds.
What are your thoughts on Bernstein’s market analysis of the ether ETFs? Feel free to share your opinions in the comments section below.
