[JPMorgan Chase: Ethereum spot ETF flows underperform compared to Bitcoin]
According to JPMorgan, there has been an overall trend of outflows since the launch of the Ethereum spot ETF. Grayscale Ethereum Trust saw much larger than expected outflows.
JPMorgan noted that asset managers are increasingly interested in comprehensive ETFs that include Bitcoin and Ethereum.
JPMorgan noted in a report that since July 23, Ethereum spot ETFs have seen about $500 million in outflows, while Bitcoin ETFs have attracted more than $5 billion in net inflows. In contrast, Ethereum ETFs have underperformed due to factors including Bitcoin’s “first mover advantage”, lack of staking mechanism and lower liquidity, which makes it less attractive to institutional investors.
The Grayscale Ethereum Trust (ETHE) saw $2.5 billion in outflows, far exceeding expectations of $1 billion. In response, Grayscale launched a mini-Ethereum ETF but only attracted $200 million in inflows.
A team led by Nikolaos Panigirtzoglou said asset managers are increasingly interested in synthetic ETFs that provide dual exposure to Bitcoin and Ethereum due to weak demand for spot Ethereum ETFs.
JPMorgan also noted that institutional and retail holdings of spot Bitcoin ETFs have changed little, with retail holdings accounting for about 80%. Most new spot Bitcoin ETFs are purchased by retail investors, either directly or indirectly through investment advisors.
