JPMorgan projects that the newly approved spot Ethereum ETFs could draw net inflows between $1 billion and $3 billion for the rest of 2024.

The recent approval of spot Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has significantly boosted crypto prices.

According to JPMorgan, the Net Asset Value (NAV) price gap for Grayscale Ethereum Trust (ETHE) has almost closed. However, they anticipate fluctuations if the launch of spot Ethereum ETFs in the US faces further delays.

Although the SEC has approved the 19b-4 forms, the S-1 filings are still under review.

These ETFs, which appear to exclude staking features to gain SEC approval, suggest the SEC might view Ethereum as a non-staking commodity.

JPMorgan analysts believe the SEC is unlikely to approve ETFs for other tokens perceived as more centralized and securities-like unless U.S. policymakers pass legislation to classify most cryptocurrencies as commodities. This scenario is considered unlikely ahead of the U.S. election.

JPMorgan has raised questions about the potential investor interest in the newly approved spot Ethereum ETFs. The bank predicts that demand for these ETFs will be considerably lower than that for spot Bitcoin ETFs.

Several factors contribute to this expectation: Bitcoin's first mover advantage, the absence of a demand catalyst similar to Bitcoin's halving, the initial exclusion of staking in Ethereum ETFs, Ethereum's distinct value proposition as an application token, lower assets under management (AUM) and liquidity, and the relatively smaller size of the Ethereum market compared to Bitcoin.

The bank estimates that spot Ethereum ETFs could attract net inflows of around $1 billion to $3 billion by the end of the year. In the future, inflows could increase to $3 billion to $6 billion if staking is included, potentially through regulatory changes.

Finally, JPMorgan noted that the initial market reaction to the launch of spot Ethereum ETFs might be negative.#BTC☀ #BrokeDown #bitcoin☀️ $BTC