Analysts at a global asset management company, bitcoin/bitcoin-spot-etfs-200000-btc/” rel=”nofollow noopener” target=”_blank”>bernstein have expressed bearish sentiment on the prospects of ethereum spot ETFs. According to Bernstein analysts Gautam Chhugani and Mahika Sapra, ethereum Spot ETF There may be less demand than spot bitcoin ETFs due to the lack of staking features.
Analysts Predict Slow ethereum Spot ETF Demand
In a new research report released Monday, bitcoin-new-ath-by-year-end/” rel=”nofollow noopener” target=”_blank”>Bernstein Analysts suggested that Spot ethereum ETFs will likely see a decline in investor demand after their launch. Analysts painted a bearish image for the newly approved investment asset, noting that enthusiasm for ethereum spot ETFs could be on a smaller scale than the Initial enthusiasm for bitcoin Spot ETFs.
Chhugani and Sapra attributed their pessimistic predictions to the Lack of eth staking features in ETF Spot ethereum filings. However, they wrote that the “commercial foundation” of ethereum Spot ETFs will 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 buy ethereum Spot 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.
Given Bernstein's bearish outlook for ethereum Spot ETFs, a potential drop in investor demand could lead to significant reduced tickets. This result would contrast sharply with the strong entries observed after the launch of the bitcoin Spot ETFs.
According to the United States Securities and Exchange Commission (SEC) bitcoin-etfs-btc-price-holds-steady-at-46000/” rel=”nofollow noopener” target=”_blank”>bitcoin Spot ETFs Approved On January 10 and launched a day later, millions of entries flooded the market within a few days, driven by investor demand and prior anticipation of digital assets. These massive inflows also contributed to bitcoin's rise to bitcoin-whale-217-million-profit-btc-73000/” rel=”nofollow noopener” target=”_blank”>new all-time highs above $73,000.
Bloomberg Analyst Reinforces ethereum ETF Launch Date
ethereum Spot ETF They are likely to hit the market in July 2024. According to asset management firm Bloomberg senior analyst Eric Balchunas, ethereum/ethereum-l2s-growth-vaneck-eyes-1-trillion-market-cap/” rel=”nofollow noopener” target=”_blank”>VanEck has filed its Form 8-A for Spot ethereum ETF. The analyst revealed in an x (formerly twitter) x.com/ericbalchunas/status/1805596193977761954?s=46″ rel=”nofollow” target=”_blank”>mail that approximately seven days after VanEck filed the same form for bitcoin spot ETFs, the ETFs were launched.
Surprisingly, on July 2, about seven days later The recent presentation of VanEck's 8-A is the date of Balchunas ethereum/spot-ethereum-etfs-10000/” rel=”nofollow noopener” target=”_blank”>Spot ethereum ETF scheduled for launch. The Bloomberg analyst has doubled down on his previous prediction, indicating that ethereum spot ETFs could debut on this date.
In response to his post, a member of the crypto community asked about the inclusion of staking features in ethereum Spot ETFs. Balchunas clarified with a “no,” indicating the SEC's concerns about classifying the holding as a unregistered security. The community member further noted that the absence of staking would make ethereum spot ETFs significantly less attractive than their bitcoin versions.
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