A recent research report published by Bernstein, a brokerage firm, predicts that the demand for Ethereum spot ETF, once approved for trading, will be comparable to that of Bitcoin ETF, although on a smaller scale. Analysts Gautam Chhugani and Mahika Sapra highlighted in the report that the lack of Ethereum staking features will likely result in moderate conversion volumes, but basic trading will attract buyers, maintaining healthy liquidity in the ETF market.

The report emphasizes the need for a more comprehensive regulatory system for Ethereum and other digital assets. Bernstein predicts that the market narrative will improve post-US election, with increasing chances of a Republican victory and President Trump's support for cryptocurrencies. Despite recent market pullbacks, the report underscores that the structural adoption cycle remains intact, indicating a promising outlook for the cryptocurrency market.

The comparison between Ethereum spot ETF and Bitcoin ETF demand is significant, as it suggests that investors are eager to diversify their portfolios by investing in different digital assets. The moderate conversion volumes expected for Ethereum spot ETF are attributed to the lack of staking features, which will likely prevent excessive conversions. However, basic trading is expected to attract buyers, ensuring healthy liquidity in the ETF market.

Bernstein's report highlights the importance of a comprehensive regulatory system for digital assets, which will provide clarity and confidence for investors. The predicted improvement in market narrative post-US election and President Trump's support for cryptocurrencies are positive indicators for the future of the cryptocurrency market. Despite recent market volatility, the report emphasizes that the structural adoption cycle remains intact, indicating a promising outlook for the industry.

In conclusion, the research report by Bernstein suggests that Ethereum spot ETF demand will mirror that of Bitcoin ETF, albeit on a smaller scale. The report highlights the need for a comprehensive regulatory system and predicts a positive market narrative post-US election. Despite recent market pullbacks, the structural adoption cycle remains intact, indicating a promising outlook for the cryptocurrency market.