Bernstein analysts Gautam Chhugani and Mahika Sapra have expressed bearish sentiments regarding the prospects of Spot Ethereum (CRYPTO:ETH) ETFs, attributing their cautious outlook to the absence of staking features compared to Spot Bitcoin (CRYPTO:BTC) ETFs.
They anticipate subdued investor demand at the launch, noting that the initial enthusiasm seen with Bitcoin ETFs may not replicate with Ethereum.
Despite this, they suggest that the ETFs could attract more interest over time as the basis of trade improves, potentially boosting liquidity.
Analysts propose a strategy where investors buy Spot Ethereum ETFs and sell futures contracts to enhance market stability.
Eric Balchunas from Bloomberg reaffirmed a launch date prediction for July 2024 for Ethereum ETFs, clarifying that staking features won't be included due to regulatory concerns, which could dampen their appeal compared to Bitcoin ETFs.