Ethereum ETF won't be able to attract as much investment as Bitcoin - Bernstein

According to a report by asset management company Bernstein, Ethereum (ETH) spot exchange-traded funds (ETFs) are expected to attract demand, but possibly on a smaller scale than Bitcoin ETFs.

Analysts Gautam Chhugani and Mahika Sapra noted that the lack of staking feature at ETH The ETF may limit the conversion of the ETH spot market.

They too mentioned , that the basis trade -- simultaneously buying a spot ETF and selling a futures contract to wait for price convergence -- will become more popular, increasing liquidity in the ETF market over time.

The US Securities and Exchange Commission (SEC) recently approved key issuer regulatory filings, bringing spot Ethereum ETFs closer to US investors.

The authors also highlighted the need for a more comprehensive regulatory framework for Ethereum and other digital assets, suggesting that the narrative could improve during the upcoming US election, especially with the increased likelihood of a Republican victory and Trump's positive stance on the industry.

Despite recent dips in crypto markets, Bernstein's report claims that “the structural cycle of adoption remains intact".