Bernstein and JPMorgan share the same view: Ethereum spot ETF demand is far less than Bitcoin

According to a report by Coindesk citing Bernstein, demand for Ethereum spot ETFs is expected to be much lower than Bitcoinspot ETFs. This is the same as JP Morgan’s previous view, emphasizing that ETH does not have a demand catalyst such as Bitcoinhalving, and Bitcoininvestors’ value proposition is even different from that of ETH and cannot be compared.

Bernstein: There are essential differences between Ethereum and Bitcoin
The Ethereum spot ETF lacks the staking function

Bernstein analysts Gautam Chhugani and Mahika Sapra issued a forecast on the demand for the Ethereum spot ETF in a Monday report, saying The scale will be far less than that of the Bitcoin spot ETF, and the reason will be pointed out: Since the Ethereum spot ETF lacks the pledge function, the demand for spot conversion will be relatively small.

In other words, Ethereum spot ETF allows investors to hold ETH through traditional financial channels, but most ETH holders want to actively participate in the Ethereum ecosystem to obtain the benefits provided by the staking platform. Here, instead of buying Ethereum spot ETFs, investors should hold real ETH directly on the chain, which will lead to more efficient use of funds and profits.

Analysts also pointed out that despite the recent correction in the crypto market, institutional adoption continues to grow as expected. They predict that the main creators of healthy liquidity in the Ethereum spot ETF market in the future will be basis trading traders, promoting liquidity in the ETF market through arbitrage trading between spot ETFs and futures contracts.

The main use case of Ethereum is the tokenization platform

At the same time, analysts have also clarified the essential differences between Ethereum and Bitcoin: ETH, as the main tokenization platform, is providing stablecoin payments and traditional assets. Tokenization (RWA) builds powerful use cases.

Yesterday, Bloomberg analyst Eric Balchunas and SEC Chairman Gary Gensler both expressed optimism about the progress of the approval of the Ethereum spot ETF. The former pointed out that the Ethereum spot ETF will be approved for listing as soon as July 2. Investors are concerned about this Also wait and see.

Cryptocurrency supervision will become clear before and after the election

Finally, in the face of the current unclear situation of encryption supervision, analysts agree that digital assets, including ETH, need a more complete regulatory system, and this situation may Improvements before and after the US election in November: As the probability of the Republican Party winning the election gradually increases, and its presidential candidate Trump tends to support cryptocurrency, relevant regulations will improve.

JPMorgan Chase: BitcoinSpot ETF has a first-mover advantage

Previously, Wall Street giant JPMorgan Chase also issued a prediction on the market size of Ethereum spot ETF, saying that it will attract a net inflow of up to 3 billion US dollars this year, but Compared with the Bitcoin spot ETF market, it is still nothing.

Bitcoinhas a first-mover advantage

analyst Nikolaos Panigirtzoglou expressed the same view as Bernstein in the report, believing that the size of Ethereum spot ETF will be much smaller than BitcoinSpot ETF: BitcoinSpot ETF already has The first-mover advantage may have saturated the overall market demand for crypto assets.

And added, "Bitcoin competes with "gold" in investors' portfolio allocation, which is more attractive to investors than Ethereum."

Bitcoin has a decrease Semi-push, Ethereum does not

In addition, in terms of market momentum, the Bitcoinhalving event, as a potential bullish event, is also an additional catalyst for creating Bitcoinspot ETF demand: In this regard, Ethereum does not Similar driving force.

Ethereum is not as liquid as Bitcoin

Finally, analysts also mentioned that since the trading activity in the Ethereum market is not as active as Bitcoin, and the total assets under management (AUM) are also smaller, Therefore, institutional investors may not be as interested in Ethereum spot ETFs as they are in Bitcoin spot ETFs.

Overall, JPMorgan Chase believes that the market’s initial reaction to the Ethereum spot ETF may be negative, or will put downward pressure on the price of ETH.

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