A recent study done by Bernstein analyzed the forthcoming Ethereum spot ETF by replicating the path of its Bitcoin equivalent with a slower pace. Analysts Gautam Chhugani and Mahika Sapra accentuated that while Ethereum does not have the staking rewards to act as a driver of Bitcoin’s ETF volumes, initial trading activities are expected to draw sustained investor interest, thus translating to strong liquidity in the ETF market.
Also, Bernstein’s report stresses the need for more effective regulatory instruments around Ethereum and other virtual assets. Furthermore, the report speculates on a positive market movement after the US election, both by the rising prospects of Republican electoral success and President Trump’s backing of cryptocurrencies. Despite recent market adjustments, Bernstein argues that cryptocurrencies’ underlying structural adoption trends are resilient.
The anxiety of the market for an Ethereum spot ETF emphasizes the shift in the investors’ perception of the digital assets, and it furthers the idea that Ethereum is decisive to blockchain investments.
