JP Morgan Says Ethereum Spot Market ETFs Will Attract Only a Small Fraction of Bitcoin ETF Flows

JP Morgan said demand for Ethereum ETFs (exchange-traded funds) will only be a small fraction of what was seen for spot Bitcoin ETFs.

Spot Ether ETFs may start Trading as early as late June Once the SEC approves your S-1 filings. But JPMorgan analysts expect that the initial market reaction to the products is “likely to be negative.”

Spot bitcoin ETFs have broken records, with BlackRock’s iShares Bitcoin Trust reaching $20 billion in assets in less than 137 days.

But Ethereum ETFs will attract only between $1 billion and $3 billion in 2024, assuming they begin trading before the end of the year, JPMorgan said.

Ethereum ETFs are considered “less attractive” to investors who do not own stakes

The investment bank said Ethereum ETFs will be “less attractive” to investors than they otherwise would have been because the US Securities and Exchange Commission has required issuers not to offer… Betting returns. Therefore, investors may prefer platforms that generate returns by betting on ETH.

She added that Bitcoin’s first advantage and the halving event, which occurs every four years and last occurred in April, may lead to investors preferring it over Ethereum.

Ethereum ETFs could capture inflows of up to 20% of the Bitcoin ETF market, says Bloomberg ETF analyst Eric Balchunas.

10 may be a lot.. but at least I’ll divide by 5 when it comes to forecasts on Ethereum ETF flows/volume/media/everything about spot Bitcoin ETFs. However, getting 20% ​​of what they earned would be a huge win/successful launch by normal ETF standards. https://t.co/QDenr3jY2B

– Eric Balchunas (@EricBalchunas) May 29, 2024

He said that Ethereum ETFs will be viewed as similar to silver in the precious metals market, as Bitcoin ETFs are gold and silver ETFs that only have a 15% market share.

“Not many will feel the need to go beyond Bitcoin/gold to allocate to crypto/precious metals,” he said.

However, JPMorgan said that net inflows would rise if the US Congress approves Ethereum as a commodity.

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