Bernstein analysts predict that once approved, spot ETH ETFs will see similar but smaller demand compared to BTC ETFs, mainly due to the absence of an ETH staking feature. This could lead to healthy liquidity through basis trades, involving simultaneous buying of the spot ETF and selling of futures contracts.

The SEC has recently approved key filings, bringing ETH ETFs closer to U.S. investors. Ethereum's role as a primary tokenization platform for stablecoins and traditional assets is growing, though improved regulation is needed. Bernstein anticipates a positive shift in crypto regulatory narratives around the U.S. elections, especially with rising Republican support and Trump's pro-crypto stance.

Source: Coindesk