Bernstein predicts modest demand for spot Ethereum ETFs in the US

While the crypto community awaits the launch of spot Ethereum ETFs, asset management brokerage firm Alliancebernstein, also called Bernstein, predicts that these funds could deliver disappointing results.

Market participants are now anticipating fund launches in July, and fund managers are preparing their S-1 filings. Grayscale Ethereum Trust (ETHE) will move from an over-the-counter traded fund to a publicly traded ETF. Grayscale's ETHE currently has a 1.41% discount to its net asset value, which could lead to outflows. Despite the recent market downturn, Bernstein analysts say the “structural adoption cycle remains unchanged.” They also highlighted the growing importance of tokenization on the Ethereum network.