Ether (ETH) has outperformed Bitcoin (BTC) over the past month, buoyed by strong inflows into spot exchange-traded funds (ETFs) and increasing corporate treasury allocations, according to a report by Wall Street bank JPMorgan (JPM) on Wednesday. This growth follows the passage of the U.S. stablecoin legislation (the GENIUS Act) and ahead of an expected vote on a broader crypto market structure bill by the end of September.
Ether ETFs and corporate treasuries
In July, spot Ether ETFs saw record inflows of $5.4 billion, nearly matching Bitcoin ETF inflows over the same period. While Bitcoin ETFs have posted modest outflows in August, Ether funds continue to attract capital. JPMorgan noted that the growing demand for Ether is supported by several factors.
JPMorgan analysts identified four main factors contributing to Ether’s strength in the market. Firstly, investors are betting that the U.S. Securities and Exchange Commission (SEC) will eventually allow staking for spot Ether ETFs, which could turn them into yield-generating products and reduce technical barriers for participation. Additionally, the analysts noted rising corporate demand, with around 10 publicly traded firms now holding Ether, accounting for approximately 2.3% of the circulating supply.
Regulatory environment and institutional interest
The SEC’s signal that liquid-staking tokens may not qualify as securities is easing institutional concerns, and its approval of in-kind redemptions for spot crypto ETFs is expected to reduce costs, improve liquidity, and limit forced selling during large withdrawals. JPMorgan suggested that Ether holdings in both ETFs and corporate treasuries could rise further, with Bitcoin’s higher share of circulating supply locked up across both categories as a benchmark.