Bernstein Analysts Turn Bearish on Spot Ethereum ETFs, Lack of Staking Raises Concerns

Analysts at a global asset management firm, Bernstein have expressed negative sentiments about the prospects of Spot Ethereum ETFs. According to Bernstein analysts, Gautam Chhugani and Mahika Sapra, Spot Ethereum ETF share price may see less demand than Spot Bitcoin ETFs due to lack of key features.

Analysts Predict Sluggish Demand for Spot Ethereum ETF

In a new research report published on Monday, Bernstein analysts suggested that the Spot Ethereum ETF will likely experience a decrease in investor demand after its launch. Analysts painted a critical image with the newly approved investment property, we note that the interest in the Ethereum Spot ETF may be on a smaller scale than the first excitement of Spot Bitcoin ETFs.

Chhugani and Sapra attributed their pessimistic predictions to lack of ETH staking features Spot Ethereum ETF share price. However, they wrote that the Spot Ethereum ETF’s “trading base” may improve over time, attracting more investors and ultimately improving liquidity.

Analysts also wrote that the trading platform will include a unique strategy where investors buy Spot Ethereum ETFs and sell futures contracts while we wait for prices to converge. This approach can ensure that the ETF market achieves sufficient liquidity and stability.

Considering Bernstein’s bearish outlook for Spot Ethereum ETFs, a potential drop in investor demand could lead to a major decline. reduced income. This result will make a big difference in strong penetration observed after the launch of Spot Bitcoin ETFs.

After the United States Securities and Exchange Commission (SEC) approved Spot Bitcoin ETFs on January 10, and launched the next day, millions of revenue flooded the market within a few days, fueled by the demand of investors and the previous expectation of digital goods. This huge influx has also contributed to the rise of Bitcoin all-time new prices over $73,000.

Bloomberg Analyst Confirms Ethereum ETF Launch Date

Spot Ethereum ETF share price they will probably enter the market in July 2024. According to Bloomberg’s senior analyst, Eric Balchunas, an asset management company, VanEck filed its Form 8-A for Spot Ethereum ETFs. Commentator revealed on X (formerly Twitter) posted that about seven days after VanEck filed the same form of Spot Bitcoin ETFs, the ETFs were launched.

Inexplicably, on July 2, about seven days later VanEck’s latest 8-A filing, dated Balchunas predicted launch of Spot Ethereum ETFs. A Bloomberg analyst has doubled down on his previous forecast, indicating that the Ethereum Spot ETFs may launch this day.

In response to his post, a member of the crypto community asked about the inclusion of staking in the features of Ethereum Spot ETFs. Balchunas clarified “no,” reflecting the SEC’s concern about classification as unregistered security. A community member also pointed out that the absence of staking would make Ethereum Spot ETFs less attractive than their Bitcoin counterparts.

The featured image was created with Dall.E, a chart from Tradingview.com