Bernstein analysts from the brokerage firm have suggested that U.S. spot ethereum exchange-traded funds (ETFs) may not generate the same level of interest as bitcoin ETFs did this year. The analysts highlighted the absence of staking as a potential drawback, leading to lower spot conversion.
Despite the anticipation surrounding the launch of spot ethereum ETFs, Bernstein, also known as Alliancebernstein, has expressed concerns about the potential performance of these funds. Analysts Gautam Chhugani and Mahika Sapra indicated that the lack of an ETH staking feature in the ETF could result in lower spot ethereum conversion.
As the market eagerly awaits the launch of these funds in July, fund managers are in the process of preparing their S-1 filings. Additionally, the Grayscale Ethereum Trust (ETHE) is set to transition from an over-the-counter (OTC) traded fund to a publicly traded ETF. Currently, ETHE holds a 1.41% discount to net asset value (NAV), which could lead to fund outflows.
Despite the recent market downturn, Bernstein analysts remain optimistic about the "structural adoption cycle," emphasizing the growing significance of tokenization on the Ethereum network. They highlighted Ethereum's role as a primary tokenization platform for stablecoin payments and the tokenization of traditional assets and funds.
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