JP Morgan: Spot Ethereum ETFs Will Capture Only A Fraction Of Bitcoin ETF Inflows

An analyst from JP Morgan stated that the demand for spot Ethereum ETFs is expected to be significantly lower than the popularity observed for spot Bitcoin ETFs. 

Spot Ethereum ETFs are anticipated to commence trading by late June as soon as the S-1 filings get approved by the SEC. However, JP Morgan analysts foresee a potentially negative initial market response to these products.

While spot Bitcoin ETFs set remarkable records, such as BlackRock’s iShares Bitcoin Trust accumulating $20 billion in assets in less than 137 days, Ethereum ETFs are forecasted to draw only between $1 billion and $3 billion by the end of 2024, provided they commence trading before the year ends.

JP Morgan also noted that the Ethereum ETFs will be perceived as “less appealing” to investors due to the requirement from the US SEC that issuers refrain from offering staking yields. Consequently, investors might lean toward platforms that generate yields through staking ETH. 

Meanwhile, Ethereum’s recent price movement has been far from smooth sailing. ETH witnessed a surge that almost touched its all-time high, only to face a sudden setback, resulting in long traders nursing losses. 

Over the past few days, Ethereum (ETH) has experienced a notable decrease in price, falling from $3,880 to approximately $3,3735. This decline has led to considerable liquidations among long traders, surpassing $55 million in the past three days, in contrast to only $16 million for short positions. 

Despite the price decrease, technical indicators depict a bullish outlook. The price stays above the short-moving average and the Relative Strength Index (RSI) comfortably sits above 60, indicating a robust underlying trend. 

At press time, Ethereum (ETH) is trading at $3,817.