Launched in January 2024, Bitcoin Spot ETFs have first mover advantage over its potential Ethereum-based analogs. That is why the liquidity inflow into Ether ETFs in the U.S. might be significantly lower than expected, the banking giant says in new report.
Ethereum spot ETFs will be met with lower market demand, JPMorgan explains why
In a research report cited by CoinDesk, JPMorgan, a leading U.S. banking institution, expresses a pessimistic stance toward potential Ether Spot ETFs. The demand for them might be significantly lower compared to Spot Bitcoin ETFs, experts concluded.
Let's see whether the collective wisdom of CT can beat JP Morgan's predictionUS ETH Spot ETF net inflow within 3 months of launching (taking into account Grayscale ETHE outflow)?https://t.co/71ej3H8N9i
— Arthur (@Arthur_0x) May 30, 2024
The analysts, led by Nikolaos Panigirtzoglou, admitted that the Bitcoin ETF launch might have already saturated the overall demand for crypto assets by institutions interested in potential ETFs in crypto.
As such, we should only expect a $3 billion inflow in all spot Etherum ETFs, the report says. Should staking be permitted for the asset managers launching ETFs, this metric might surge to $6.
As covered by U.Today previously, including opportunities to collect rewards from staked Ether (ETH) is one of the most controversial questions for spot ETH ETFs applicants.
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Since staking is under pressure from U.S. regulators, ARK Invest and 21 Shares recently removed it from documents filed with the SEC.
Ether ETF saga in decisive phase with new S-1s submitted
By doing so, they hope to leave the SEC with one less thing for it to use to reject the ETF applications, Bloomberg expert Eric Balchunas says.
On May 23, 2024, the U.S. watchdog greenlit 19b-4s requests for Ether ETFs. The most crucial S-1s forms are awaiting approval by the regulators.
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In the anticipation, some major actors of the segment are updating their forms to maximize their odds of approval. Yesterday, Blackrock submitted an updated S-1 form to the SEC.