Ether Outperforms Bitcoin Driven by Accelerating ETF Investments and Corporate Demand, Says JPMorgan

JPMorgan: Ether Outshines Bitcoin as ETF Inflows and Corporate Demand Accelerate

Ether (ETH) has outperformed bitcoin (BTC) over the past month, supported by strong inflows into spot exchange-traded funds (ETFs) and increasing interest from corporate treasuries, according to a JPMorgan report released Wednesday.

The rise comes amid the passage of the U.S. stablecoin bill—the GENIUS Act—and ahead of a likely vote on broader crypto market regulations expected by the end of September.

In July, spot ether ETFs attracted record inflows totaling $5.4 billion, nearly matching the inflows seen by bitcoin ETFs during the same period. While bitcoin ETFs have seen slight outflows in August, ether funds continue to pull in fresh capital, JPMorgan noted.

JPMorgan analysts highlighted four factors driving ether’s strength:

The market anticipates SEC approval for staking within spot ether ETFs, which would allow these products to generate yields and lower technical hurdles for investors.
Corporate demand is increasing, with about 10 publicly traded companies holding ether equivalent to roughly 2.3% of its circulating supply. Many may pursue additional earnings through staking or decentralized finance (DeFi) strategies.
The SEC’s recent stance suggesting liquid-staking tokens may not be securities has eased institutional concerns.
The SEC’s approval of in-kind redemptions for spot crypto ETFs is expected to improve liquidity, reduce costs, and minimize forced selling during large withdrawals.

JPMorgan expects ether holdings in ETFs and corporate treasuries to grow further, noting bitcoin’s currently higher locked supply across similar categories as a benchmark for potential growth.