JPMorgan Highlights Ether’s Outperformance Driven by ETF Inflows and Corporate Adoption
Ether (ETH) has recently outpaced bitcoin (BTC), thanks to strong inflows into spot exchange-traded funds (ETFs) and increased corporate treasury holdings, according to a JPMorgan report released on Wednesday.
This growth follows the passage of the GENIUS Act, U.S. stablecoin legislation, and precedes an expected vote on broader crypto market regulations by the end of September.
In July, spot ether ETFs attracted a record $5.4 billion in inflows, nearly matching bitcoin ETFs during the same period. While bitcoin ETFs saw modest outflows in August, ether funds continued to draw significant capital.
JPMorgan analysts pointed to four main factors behind ether’s gains:
- Anticipation that the SEC will allow staking within spot ether ETFs, turning them into yield-generating products and lowering barriers for investors.
- Rising corporate demand, with around 10 publicly traded companies holding ether equivalent to about 2.3% of the circulating supply. Many may pursue staking or decentralized finance (DeFi) strategies to boost returns.
- The SEC’s indication that liquid-staking tokens might not be classified as securities, easing institutional concerns.
- Approval of in-kind redemptions for spot crypto ETFs, expected to improve liquidity, reduce costs, and prevent forced selling during large withdrawals.
JPMorgan expects ether holdings in ETFs and corporate treasuries to increase further, citing bitcoin’s higher locked supply in these categories as a benchmark.
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