According to a recent study by Bernstein, once Ether (ETH) spot exchange-traded funds (ETFs) receive approval for trading, they may garner interest similar to their Bitcoin (BTC) counterparts but at a lower level.

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• Bernstein’s study thinks fewer people will want to buy Ethereum (ETH) ETFs than Bitcoin (BTC) ETFs once they are allowed to be traded.
• Even though there’s no way to earn more ETH in the ETF, Bernstein workers expect the ETF market to stay strong through people slowly buying more.
• After the Securities and Exchange Commission (SEC) said yes to important documents last month, Ethereum ETFs are one step closer to being available for people in the U.S. to buy.

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Ether Spot ETFs Likely to See Less Demand Than Bitcoin, Says Bernstein

Gautam Chhugani and Mahika Sapra, who work at Bernstein, think people might not buy as much Ethereum (ETH) because there’s no way to earn more ETH in the new ETF (Exchange Traded Fund). Still, they believe that slowly buying more of the ETFs and selling future contracts will strengthen the ETF market.

Last month, the Securities and Exchange Commission (SEC) – a group that makes the rules for trading – said yes to some essential documents. This brings Ethereum ETFs one step closer to being available for people in the U.S. to buy.

The analysts highlighted that Ethereum is growing as the main platform for tokenization. This means it is used in stablecoin (a type of cryptocurrency) transactions and in turning traditional assets and funds into tokens.

The Bernstein report discusses better rules for Ethereum and other digital currencies. It predicts a more positive story about the U.S. elections later this year because it looks like the Republicans might win, and President Trump recently said good things about cryptocurrencies.

Even though the crypto markets have been down lately, the authors believe that the trend of people adopting cryptocurrencies is still strong.

JPMorgan, a big name on Wall Street, agrees with Bernstein’s thinking. They think there will be less demand for Ethereum ETFs than Bitcoin ETFs. This is because Bitcoin was the first, and it might rule the overall market for crypto ETFs.

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