JPMorgan Reports Ether Surpasses Bitcoin on Rising ETF Inflows and Corporate Demand
Ether (ETH) has outperformed bitcoin (BTC) over the past month, propelled by strong inflows into spot exchange-traded funds (ETFs) and increased allocations by corporate treasuries, according to a JPMorgan report published Wednesday.
This upswing follows the passage of the U.S. GENIUS Act on stablecoins and precedes a forthcoming vote on broader cryptocurrency market reforms expected by the end of September.
In July, spot ether ETFs attracted record inflows totaling $5.4 billion, nearly matching bitcoin ETF inflows during the same period. Despite modest outflows in bitcoin ETFs during August, ether funds continued to attract significant capital, the report noted.
JPMorgan analysts highlighted four key drivers behind ether’s recent strength:
- Market expectations that the SEC will eventually approve staking for spot ether ETFs, which would enable yield generation and lower technical barriers for investors.
- Growing corporate interest, with approximately 10 publicly traded companies holding ether equal to roughly 2.3% of its circulating supply. Many of these firms may seek additional returns through staking or decentralized finance (DeFi) initiatives.
- The SEC’s signal that liquid-staking tokens may not be classified as securities, easing institutional concerns.
- The approval of in-kind redemptions for spot crypto ETFs, expected to enhance liquidity, reduce costs, and mitigate forced selling during large withdrawals.
JPMorgan anticipates that ether holdings in both ETFs and corporate treasuries could continue to rise, citing bitcoin’s currently higher locked supply across these categories as a benchmark for potential growth.
