In a research note published on Monday, broker Bernstein noted that the source of demand for an Ethereum Spot ETF, once approved for trading, is likely to be similar to that of a Bitcoin ETF, but will be smaller in size. In the report, analysts Gautam Chhugani and Mahika Sapra stressed that the conversion volume of an Ethereum Spot ETF is not expected to be excessive due to the lack of an Ethereum staking feature. However, they expect the underlying trading to gradually attract buyers, thus maintaining healthy liquidity in the ETF market. The underlying trading strategy involves buying a spot ETF and selling a futures contract simultaneously, waiting for prices to converge. The report also noted that Ethereum, as the main tokenization platform, is establishing strong use cases for stablecoin payments and the tokenization of traditional asset funds. Bernstein believes that Ethereum and other digital assets need a better regulatory regime, and expects the post-election market narrative in the US to improve as the chances of a Republican victory increase and Trump now supports cryptocurrencies. Despite the recent correction in the cryptocurrency market, the report emphasizes that the "structural adoption cycle remains intact".