Ether Outperforms Bitcoin Amid Strong ETF Inflows and Corporate Demand
Ether (ETH) has outperformed Bitcoin (BTC) in the last month, driven by strong inflows into spot exchange-traded funds (ETFs) and increased corporate treasury allocations, according to JPMorgan.
Key points from the report include:
- In July, spot ether ETFs recorded $5.4 billion in inflows, nearly matching bitcoin ETF inflows.
- Bitcoin ETFs experienced modest outflows in August, while ether funds continued to attract capital.
- Investors expect the SEC to allow staking for spot ether ETFs, potentially making them yield-generating products.
- About 10 publicly traded firms hold ether, amounting to 2.3% of the circulating supply, with some seeking income through staking or decentralized finance strategies.
- The SEC's stance on liquid-staking tokens not qualifying as securities alleviates institutional concerns.
- Approval of in-kind redemptions for crypto ETFs may reduce costs and improve liquidity.
JPMorgan anticipates that ether holdings in ETFs and corporate treasuries could increase further, referencing Bitcoin’s higher share of locked circulating supply as a benchmark.