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Ethereum spot ETFs will see less demand than similar Bitcoin products due to the lack of staking, CoinDesk reports, citing a report from Bernstein.
According to analysts, ETH ETFs will attract funds from the same stakeholders during the launch of trading, but on a limited scale.
“ETH will not see such high conversion in ETFs due to the lack of staking functionality,” the experts added.
However, Bernstein noted that the underlying trades will likely find buyers, which will contribute to healthy liquidity in the ETF market. Such a trading strategy involves simultaneously buying a spot fund and selling a futures contract, and then waiting for the prices in the positions to converge.
On May 23, the SEC approved 19b-4 filings from issuers of spot Ethereum ETFs. Trading will begin after the agency signs its S-1 registration statements. BlackRock, VanEck, Franklin Templeton, Grayscale Investments, Invesco Galaxy and 21Shares filed updated documents in June. 0 reply
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