JPMorgan Highlights Ether’s Outperformance Over Bitcoin Fueled by ETF and Corporate Demand

Ether (ETH) has recently outpaced bitcoin (BTC) in performance, driven by robust inflows into spot exchange-traded funds (ETFs) and growing allocations by corporate treasuries, according to a report from Wall Street giant JPMorgan on Wednesday.

This surge follows the introduction of U.S. stablecoin legislation known as the GENIUS Act and precedes an expected vote on broader crypto market regulation slated for late September.

In July, spot ether ETFs recorded a record $5.4 billion in inflows, nearly matching those seen in bitcoin ETFs during the same timeframe. While bitcoin ETFs experienced slight outflows in August, ether funds continued to draw capital, the bank noted.

JPMorgan analysts identified four key drivers behind ether’s recent momentum:

• Investors anticipate that the Securities and Exchange Commission (SEC) will eventually allow staking within spot ether ETFs. Such approval would enable these funds to generate yield, reducing barriers for participation.
• Corporate interest is rising, with roughly 10 publicly traded companies holding ether equivalent to about 2.3% of its circulating supply. Some of these firms may leverage staking or decentralized finance (DeFi) to boost returns.
• The SEC’s indication that liquid-staking tokens might not be classified as securities has alleviated institutional concerns.
• Approval of in-kind redemptions for spot crypto ETFs is expected to lower costs, improve liquidity, and prevent forced selling during large withdrawals.

JPMorgan anticipates that ether holdings—both in ETFs and corporate treasuries—could continue growing, referencing bitcoin’s larger locked supply across these categories as a comparative benchmark.