The Ethereum blockchain's unique selling point is its role as a decentralized computer, Wall Street broker Bernstein said in a research report Monday.

Inflows into ether ETH exchange-traded funds are increasing as institutions become aware of the network's value proposition, the broker said.

The blockchain "deserves love" as it is useful technology, according to the report, acknowledging that ether's larger peer bitcoin benefits from its perception as a store of value, or digital gold.

"Interesting blockchain use cases such as stablecoins and tokenization are native to Ethereum, analysts led by Gautam Chhugani wrote, adding that the network enjoys "maximum market share" in these areas.

Companies that use stablecoin technology are paying transaction fees to the Ethereum blockchain, the report noted.

As institutions become more aware of the value inherent in the network, ether ETF inflows have begun to pick up, the report noted.

Ether ETF inflows reached $815 million over the last 20 days, with year-to-date net inflows turning positive at $658 million, Bernstein said.

"The narrative around value accrual of public blockchain networks is at a critical inflection point, " the broker said, and this is "starting to reflect in investor interest in ETH ETF inflows."

Read more: ETH Surges as Spot ETF Inflows Hit 15-Day Streak, Traders Watch $2,540 Level