Bernstein Analysts Turn Bearish On Spot Ethereum ETFs, Lack Of Staking Raises Concerns

Analysts
at
global
asset
management
firm,

Bernstein

have
expressed
bearish
sentiment
for
Spot
Ethereum
ETFs
prospects.
According
to
Bernstein
analysts,
Gautam
Chhugani
and
Mahika
Sapra,

Spot
Ethereum
ETFs

may
see
less
demand
than
Spot
Bitcoin
ETFs
due
to
a
lack
of
staking
features.

Analysts
Predict
Sluggish
Demand
For
Spot
Ethereum
ETFs

In
a
new
research
report
published
on
Monday,

Bernstein
analysts

suggested
that
Spot
Ethereum
ETFs
will
likely
experience
a
wane
in
investor
demand
following
its
launch.
The
analysts
painted
a

bearish
picture

for
the
recently
approved
investment
asset,
noting
that
the
enthusiasm
for
Ethereum
Spot
ETFs
might
be
on
a
smaller
scale
than
the

initial
excitement
for
Spot
Bitcoin
ETFs. 

Chhugani
and
Sapra
attributed
their
pessimistic
predictions
to
the

lack
of
ETH
staking
features

in
Spot
Ethereum
ETF
filings.
However,
they
wrote
that
the
“basis
of
trade”
for
Spot
Ethereum
ETFs
may
likely
improve
over
time,
attracting
more
investors
and
ultimately
improving
liquidity. 

The
analysts
also
wrote
that
the
basis
of
the
trade
would
involve
a
unique
strategy
where
investors
purchase
Spot
Ethereum
ETFs
and

sell
futures
contracts

while
waiting
for
prices
to
converge.
This
approach
would
potentially
ensure
that
the
ETF
market
gains
ample
liquidity
and
sustainability. 

Considering
Bernstein’s
bearish
outlook
for
Spot
Ethereum
ETFs,
a
potential
drop
in
investor
demand
could
lead
to
significantly

reduced
inflows.
This
outcome
would
be
a
stark
contrast
to
the

strong
inflows

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
it
launched
a
day
after,
millions
of
inflows
flooded
the
market
within
a
few
days,
fueled
by
investors’
demand
and
prior
anticipation
for
the
digital
assets.
These
massive
inflows
also
contributed
to
Bitcoin’s
rise
to

new
all-time
highs
above
$73,000.

Bloomberg
Analyst
Reinforces
Ethereum
ETFs
Launch
Date

Spot
Ethereum
ETFs

are
likely
to
hit
the
market
by
July
2024.
According
to
senior
Bloomberg
analyst,
Eric
Balchunas,
asset
management
firm,

VanEck

has
filed
its
8-A
form
for
Spot
Ethereum
ETFs.
The
analyst
disclosed
in
an
X
(formerly
Twitter)

post

that
approximately
seven
days
after
VanEck
filed
the
same
form
for
Spot
Bitcoin
ETFs,
the
ETFs
launched.

Uncanningly,
July
2,
about
seven
days
after  VanEck’s
recent
8-A
filing,
is
the
date
Balchunas

predicted
for
the
launch
of
Spot
Ethereum
ETFs.
The
Bloomberg
analyst
has
doubled
down
on
his
previous
prediction,
indicating
that
Ethereum
Spot
ETFs
could
debut
on
this
date. 

Responding
to
his
post,
a
crypto
community
member
inquired
about
the
inclusion
of
staking
in
features
for
the
Ethereum
Spot
ETFs.
Balchunas
clarified
with
a
“no,”
indicating
the
SEC’s
concerns
about
the
classification
of
staking
as
an

unregistered
security.
The
community
member
further
pointed
out
that
the
absence
of
staking
would
render
Ethereum
Spot
ETFs
significantly
less
appealing
than
their
Bitcoin
versions. 

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image
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