Bitrabo Editorial
A critical view has been expressed for Spot Ethereum ETFs by analysts at global asset management firm Bernstein. The analysts highlighted concerns over the lack of staking features in Spot Ethereum ETFs, which may lead to diminished demand compared to Spot Bitcoin ETFs.
Anticipated Decrease in Demand for Spot Ethereum ETFs
In a recent research report, Bernstein analysts projected a potential decrease in investor interest following the launch of Spot Ethereum ETFs. They indicated a pessimistic stance towards this newly approved investment asset, suggesting that the reception for Ethereum Spot ETFs might not match the initial excitement seen with Spot Bitcoin ETFs.
The absence of ETH staking features in the Spot Ethereum ETF filings was cited as the primary reason for the analysts’ negative predictions. However, they noted that with time, the trade basis for Spot Ethereum ETFs could improve, attracting more investors and enhancing liquidity.
The analysts proposed a unique trading strategy where investors would buy Spot Ethereum ETFs and sell futures contracts while waiting for price convergence. This approach could potentially boost liquidity and sustainability in the ETF market.
If the projected drop in investor demand for Spot Ethereum ETFs materializes, it could result in significantly reduced inflows, unlike the robust inflows seen post the launch of Spot Bitcoin ETFs.
Bloomberg Analyst Supports Launch Date for Ethereum ETFs
Spot Ethereum ETFs are expected to be introduced by July 2024, according to senior Bloomberg analyst Eric Balchunas. Asset management firm VanEck has filed for Spot Ethereum ETFs, with the launch anticipated around July 2 based on recent filings. Balchunas reaffirmed this forecast, suggesting that Ethereum Spot ETFs could potentially debut on this specified date.
In response to queries regarding the inclusion of staking features in Ethereum Spot ETFs, Balchunas clarified that this aspect was not included due to SEC concerns about staking being categorized as an unregistered security. The absence of staking features could make Ethereum Spot ETFs less attractive compared to their Bitcoin counterparts.