JPMorgan: Ether Outperforms Bitcoin Amid Rising ETF Inflows and Corporate Treasury Adoption
Ether (ETH) has surged ahead of bitcoin (BTC) in recent performance, fueled by robust inflows into spot exchange-traded funds (ETFs) and expanding corporate treasury holdings, according to a report by JPMorgan published Wednesday.
This trend follows the enactment of the U.S. GENIUS Act on stablecoins and comes ahead of a critical vote on broader cryptocurrency market regulations expected by late September.
In July, spot ether ETFs recorded record inflows of $5.4 billion, nearly matching the volume seen in bitcoin ETFs over the same period. While bitcoin ETFs experienced slight outflows in August, ether funds continued to attract substantial investment, the report noted.
JPMorgan’s analysts identified four main catalysts behind ether’s momentum:
- Investors anticipate the U.S. Securities and Exchange Commission (SEC) will approve staking within spot ether ETFs, which would convert them into yield-generating instruments and reduce participation barriers.
- Corporate demand is rising, with about ten publicly traded companies holding ether equal to roughly 2.3% of its circulating supply. Many of these firms may seek to enhance returns via staking or decentralized finance (DeFi) protocols.
- The SEC’s indication that liquid-staking tokens may not be classified as securities has helped ease concerns among institutional investors.
- The approval of in-kind redemptions for spot crypto ETFs is expected to boost liquidity, lower costs, and limit forced selling during large withdrawals.
JPMorgan expects ether holdings in ETFs and corporate treasuries to continue growing, citing bitcoin’s larger locked supply in these categories as a benchmark for potential expansion.
