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JPMorgan expects the new spot Ethereum ETFs to attract net inflows of $1 billion to $3 billion through the remainder of 2024.
The recent U.S. Securities and Exchange Commission (SEC) approval of spot Ethereum exchange-traded funds (ETFs) has sent crypto prices soaring.
According to #JPMorgan , the Net Asset Value (#NAV ) price gap for Grayscale #Ethereum Trust (ETHE) has almost closed, but fluctuations are expected if the launch of spot Ethereum ETFs in the US faces further delays. Although the SEC has approved the 19b-4 forms, S-1 filings are still under review.
The approval of these ETFs, which appear to exclude staking features to ensure SEC approval, suggests that the SEC may view Ethereum as a non-staking commodity.
#JPMorgan analysts believe the SEC is unlikely to approve ETFs for other tokens that are more centralized and viewed as securities unless U.S. policymakers pass legislation treating most cryptocurrencies as commodities (a scenario seen as less likely ahead of the U.S. election). believes.
JPMorgan has raised questions about the potential for investor inflow into newly approved spot Ethereum ETFs. The bank predicts that demand for these ETFs will be well below that seen for spot Bitcoin ETFs.
Reasons for this include Bitcoin's first mover advantage, lack of a demand catalyst similar to Bitcoin's halving, initial exclusion of staking in Ethereum ETFs, Ethereum's different value proposition as an application token, lower AUM/liquidity, and lack of interest in Bitcoin The relative size of the Ethereum market in comparison.
The bank estimates spot Ethereum ETFs could attract modest net inflows of around $1 billion to $3 billion over the remainder of the year. In the future, inflows could increase by $3 billion to $6 billion if staking is included, potentially through regulatory changes.
Finally, JPMorgan noted that initial market reaction to the launch of spot Ethereum ETFs may be negative.
The recent U.S. Securities and Exchange Commission (SEC) approval of spot Ethereum exchange-traded funds (ETFs) has sent crypto prices soaring.
According to #JPMorgan , the Net Asset Value (#NAV ) price gap for Grayscale #Ethereum Trust (ETHE) has almost closed, but fluctuations are expected if the launch of spot Ethereum ETFs in the US faces further delays. Although the SEC has approved the 19b-4 forms, S-1 filings are still under review.
The approval of these ETFs, which appear to exclude staking features to ensure SEC approval, suggests that the SEC may view Ethereum as a non-staking commodity.
#JPMorgan analysts believe the SEC is unlikely to approve ETFs for other tokens that are more centralized and viewed as securities unless U.S. policymakers pass legislation treating most cryptocurrencies as commodities (a scenario seen as less likely ahead of the U.S. election). believes.
JPMorgan has raised questions about the potential for investor inflow into newly approved spot Ethereum ETFs. The bank predicts that demand for these ETFs will be well below that seen for spot Bitcoin ETFs.
Reasons for this include Bitcoin's first mover advantage, lack of a demand catalyst similar to Bitcoin's halving, initial exclusion of staking in Ethereum ETFs, Ethereum's different value proposition as an application token, lower AUM/liquidity, and lack of interest in Bitcoin The relative size of the Ethereum market in comparison.
The bank estimates spot Ethereum ETFs could attract modest net inflows of around $1 billion to $3 billion over the remainder of the year. In the future, inflows could increase by $3 billion to $6 billion if staking is included, potentially through regulatory changes.
Finally, JPMorgan noted that initial market reaction to the launch of spot Ethereum ETFs may be negative.