Bernstein Believes Spot Ethereum ETFs Might Have Lower Demand than Bitcoin’s
According to a research report by broker Bernstein, if approved for trading, spot exchange-traded funds (ETFs) for the digital currency Ether will likely have similar sources of demand to the Bitcoin ETF but on a smaller scale.
The report, written by analysts Gautam Chhugani and Mahika Sapra, states that while the basis trade may attract investors in the long run, ETH may not see as much conversion into the ETF due to the lack of an ETH staking feature.
The basis trade involves buying the spot ETF and selling the futures contract at the same time, waiting for prices to converge. Spot Ether ETFs are gaining traction and are close to being available to investors in the US.
The SEC recently approved key regulatory filings from issuers last month. The authors also noted that ETH is becoming a popular platform for tokenization, offering a strong use case for stablecoin payments and traditional asset and fund tokenization.
