Analysts at JPMorgan predict that the demand for spot Ether (ETH) exchange-traded funds (ETFs) will be significantly lower than that of Bitcoin ETFs. The research report anticipates net inflows of up to $3 billion for Ether ETFs in 2024. If staking is allowed, this figure could increase to $6 billion.
Bitcoin’s advantage has saturated overall demand for crypto asset ETFs. The launch of Bitcoin spot ETFs in January saw substantial inflows, a trend not expected to be repeated for Ether ETFs. Analysts note that Bitcoin’s recent halving event also boosted demand, a factor not present for Ether.
Ether’s lower liquidity and smaller market capitalization make its ETFs less appealing to institutional investors compared to Bitcoin. Additionally, the absence of staking in Ether ETFs reduces their attractiveness to platforms offering staking yields.Â
While Ether ETFs are close to approval in the U.S. final clearance depends on the Securities and Exchange Commission (SEC) approving their S-1 filings.
Also read: JPMorgan Doubts SEC Approval for Solana and Crypto ETFs Post-Ethereum
