JPMorgan Analysis: Potential Ethereum Spot ETF Demand is Lower than Bitcoin Spot ETFs

Bittime – According to a report from Coindesk, JPMorgan estimates that demand for spot ethereum (ETH) exchange-traded funds (ETFs) will be much lower than demand for bitcoin (BTC) ETFs for several reasons. This analysis was outlined in a research report released on Thursday.

JPMorgan projects that spot ethereum ETFs could attract up to $3 billion in net inflows by the end of this year. If staking were allowed, this figure might increase to $6 billion.

Also read : ETH Spot ETF Approved by SEC, but Process Not Completed!

Bitcoin Is Able To Meet Demand Due To Its Position

“Bitcoin has a first-mover advantage, potentially filling the overall demand for crypto assets in response to spot ETF approvals,” notes analysts led by Nikolaos Panigirtzoglou. This first mover advantage has positioned bitcoin more favorably in the eyes of investors.

Also read the Positive Impact of Ethereum ETF Approval on Bitcoin

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SEC Still Waiting for Ethereum ETF Form S-1

Ether ETFs are approaching availability in the US after the Securities and Exchange Commission (SEC) approved key regulatory filings from applicants last week. However, they have not yet received permission to trade, as the SEC still has to approve their S-1 filing. Bitcoin ETFs, on the other hand, started trading in January.

Also read SEC Asks Ethereum Spot ETF Issuer to Submit Preliminary S-1 Plan

The Absence of Halving and Staking Events on Ethereum Affects Market Enthusiasticity 

An additional catalyst for spot bitcoin ETF demand was the bitcoin halving in April, whereas there was no such event on Ethereum. Additionally, the lack of staking for approved spot ethereum ETFs makes them less attractive compared to other platforms that offer staking yields, according to JPMorgan.

Also Read How To Buy Crypto:

Ethereum offers benefits compared to Bitcoin which offers investments like gold

Ethereum, as an application token, offers a different value proposition for investors compared to bitcoin. Bitcoin's appeal is broader, competing with gold in portfolio allocation, the report explains. Additionally, the bank highlighted that lower liquidity and fewer AUM/assets under management make spot ethereum ETFs less attractive to institutional investors compared to bitcoin.

Signal of Market Enthusiasm from Grayscale Ethereum Trust

The initial market response to the launch of an ethereum spot ETF will probably be negative. Speculative investors who purchased the Grayscale Ethereum Trust (ETHE) in hopes of converting it into an ETF may be taking profits, which could lead to outflows of up to $1 billion from ETHE, which would pressure ethereum prices, the report concluded.

Also read: Grayscale Adds ETH Staking to Their Ethereum ETF Application

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How to Buy Crypto from Bittime

You can buy and sell crypto assets in an easy and safe way through Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.