In a recent research report, brokerage firm Bernstein pointed out that the demand for Ethereum spot ETFs, once approved for trading, may be similar to that of Bitcoin ETFs, but on a smaller scale. Analysts Gautam Chhugani and Mahika Sapra emphasized in the report that the lack of Ethereum staking functionality is expected to limit the conversion volume of Ethereum spot ETFs. However, they expect underlying trading to gradually attract buyers, thereby maintaining healthy liquidity in the ETF market. Bernstein believes that Ethereum and other digital assets need more robust regulatory frameworks, and anticipates an improved market narrative after the U.S. election, as the chances of a Republican victory increase and with Trump’s current support for cryptocurrency. Despite the recent pullback in the cryptocurrency market, the report emphasizes that the “structural adoption cycle remains intact.”
