In their latest report, JPMorgan analysts express doubts about spot Ethereum ETFs
In a recent report, analysts from JPMorgan expressed skepticism about the potential success of spot Ethereum ETFs compared to spot Bitcoin ETFs. The analysts predict that the launch of Ethereum spot funds may not generate as much interest and capital inflow as seen with Bitcoin ETFs.
Few factors explaining this trend
The analysts suggest several reasons for this trend. Firstly, Bitcoin’s established advantage as a cryptocurrency pioneer makes it more attractive to investors. Secondly, the recent Bitcoin halving event in April 2024 further fueled interest in Bitcoin ETFs.
Additionally, Bitcoin’s unique advantages, such as being a competitor to gold in portfolio diversification, give it an edge over Ethereum. The analysts also note that Ethereum’s lower liquidity compared to Bitcoin makes it less appealing for hedge fund use.
Staking opportunities and lower demand
Moreover, the lack of staking opportunities in spot Ethereum ETFs may decrease their appeal to investors seeking staking profitability. These factors combined contribute to the analysts’ forecast of lower net capital inflows into spot Ethereum ETFs by the end of the year, ranging from 1 to 3 billion dollars.
