JPMorgan: 'Ethereum Outperforms Bitcoin... Greater Growth Potential'

Recent weeks have seen analysis indicating that Ethereum (ETH) has outperformed Bitcoin (BTC).

According to The Block on the 21st (local time), JPMorgan cited four factors driving Ethereum's upward trend: △ETF inflows △corporate balance sheet adoption △regulatory clarity △ETF structure improvements, stating as much.

The analyst team led by Nikolaos Panigirtzoglou, Managing Director at JPMorgan, explained in a report that "$5.4 billion flowed into spot Ethereum ETFs in July, matching the performance of spot Bitcoin ETFs during the same period," and that "while Bitcoin ETFs have seen slight outflows since August, Ethereum ETFs are still experiencing inflows."

They also noted, "After the United States passed the GENIUS Act, the stablecoin legislation, in July, Ethereum achieved more marked results than Bitcoin," and analyzed that "corporate adoption of Ethereum has also increased, and currently about ten listed companies hold ETH, which accounts for about 2.3% of the circulating supply."

Additionally, the U.S. Securities and Exchange Commission (SEC) issued an interpretation that "liquid staking tokens may not be considered securities," which was also interpreted as a positive factor. Furthermore, the in-kind redemption method recently approved by the SEC for spot Bitcoin and Ethereum ETFs was cited as another reason behind Ethereum's rise.

JPMorgan commented, "Since investors can redeem ETFs in crypto rather than cash, this is expected to reduce costs, improve liquidity, and alleviate selling pressure during large-scale redemptions," and added, "Ethereum has greater growth potential than Bitcoin when it comes to ETF and corporate balance sheet adoption. As the holdings of Ethereum by corporations and institutions still lag behind BTC, there is significant room for further capital inflows if adoption expands."