Why Ethereum ETF Lagging Bitcoin: JPMorgan Report
In its latest report, US banking giant JPMorgan mentioned why Ethereum is lagging far behind Bitcoin spot ETFs.
According to a report released today by JPMorgan, Ethereum has been experiencing significant outflows since last month despite the successful launch of the Ethereum spot ETF in the US. The bank attributed the weak performance of Ethereum ETFs to Bitcoin’s leadership, lack of participation, and lower liquidity.
JPMorgan also highlighted larger than expected outflows from Grayscale Ethereum Trust. While there was a $2.5 billion outflow from Grayscale Ethereum Trust, the bank’s expectation was that this figure would be around $1 billion. According to the report, Grayscale launched a mini Ethereum ETF to counter these outflows, but this fund only saw inflows of $200 million.
Ethereum spot ETFs, launched in July, saw net outflows of approximately $500 million in the first five weeks, while Bitcoin ETFs saw net inflows of over $5 billion over the same period.
In its report, JPMorgan included the following statements:
Due to weak demand for Ethereum spot ETFs compared to Bitcoin spot ETFs, there appears to be growing interest among asset managers for a combined ETF offering investments in both Bitcoin and Ethereum.
