Ethereum ETFs will see good demand but less liquidity than Bitcoin, warns Bernstein – DiarioBitcoin

For analysts Bernstein The fact that ETFs Ethereum cash will not allow staking of funds, which would discourage many investors who would see no difference between this product and its Bitcoin-based pair.

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• Bernstein anticipates that ETFs Ethereum They will have demand, but not as much liquidity as expected
• The lack of staking with ETH could demotivate many investors
• However, due to its technological benefits and perspectives, the ETF Ethereum will attract investors
• A date for the arrival of these products to the US market has not yet been decided.

In a new report published by Bernstein, the firm warns that ETFs may Ethereum once approved see the same demand as their peers based on Bitcoin, although they warn that the amount of liquidity that enters could be much less than expected.

ETFs Ethereum will have good demand but less liquidity

The reading was done by the analysts of Bernstein, Gautam Chhugani and Mahika Sapra, quoted by CoinDesk, who anticipate that although ETFs Ethereum cash will be attractive to certain investors, the fact that staking mechanisms are not supported with the assets to generate dividends will likely discourage many, although this does not mean that the funds do not see considerable levels of activity and liquidity to remain healthy.

Although many analysts already expect that the volume of ETFs Ethereum is less than that of its peers Bitcoin, The team of Bernstein highlights the value of ETH For potential fund investors:

“ETH, as a primary tokenization platform, is creating a strong use case, both for stablecoin payments and the tokenization of traditional assets and funds”the authors wrote.

However, those who are not so optimistic point out that it is difficult to compare ETFs Bitcoin with those of Ethereum, since the main digital currency is attached to the narrative of the “digital gold”while ETH He sees its value from a more technological perspective, which can be difficult to make visible to investors who are less knowledgeable about the subject.

Countdown to ETFs Ethereum

Bernstein’s reading comes into place in what many understand as the countdown to the arrival of ETFs Ethereum, which are waiting for the final approval of the forms S-1 on the part of the Securities and Exchange Commission (SEC) to determine the exact date of its release. For the latter, the agency does not manage deadlines or estimated periods.

However, the president of the SEC, Gary Gensler anticipated that based on his experience, the approval process for ETF application registrations Ethereum cash should conclude at the end of summer, that is, by the end of August or beginning of September.

Regarding the SEC review process, sources with knowledge of the case indicate that the regulator is taking an average of two weeks to make returns and give feedback to applicants for their S-1 reports, so the process is going very well. path today.

Although at the moment it is difficult to estimate when the ETFs will arrive Ethereum, the analyst Bloomberg, Eric Balchunas, specified that at least in the case of VanEck, Your fund could be approved in the next seven days, seeing certain similarities in the current state of your process and the steps you went through at the time when you were with ETFs. Bitcoin. However, he clarified that this is simply an estimate based on certain parallels, so there are no conclusive elements to ensure anything.

The only thing that seems to be more certain at this point is the thesis that ETFs Ethereum They will reach the market before the next presidential elections in the US, given the possibility that it will be used as a political tool by the Biden administration, and thereby seek to capture the support of votes from investors and enthusiasts of the crypto sector. .

Article by Angel Di Matteo / DailyBitcoin

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