Ether (Eth) has surpassed Bitcoin In the race (ETFS) and growing trading assignments, Wall Street Bank JPMorgan (JPM) said in a report Wednesday.
The move comes in the wake of US StableCOin legislation (Genius Act) and prior to an expected vote on a wider crypto market structure bill by the end of September, the report says.
In July, Ether -ETFs experienced record flow of $ 5.4 billion, almost matching Bitcoin Etf flow over the same period. While Bitcoin ETFs have sent modest outflows in August, Ether Funds continued to attract capital, JPMorgan noted.
The bank’s analysts pointed to four main factors behind Ether’s recent strength.
Investors are betting on Securities and Exchange Commission (SEK) will eventually allow effort for Spotether ETFs, which would turn them into yield-generating products while lowering technical barriers to participation.
The company’s demand is also rising, noticing the analysts, by approx. 10 publicly traded companies that now keep Ether equal to a total of 2.3% of the circulating supply. Some of these companies may seek additional income through efforts or decentralized financing (Defi) Strategies.
At the same time, SEC has signaled that liquid tokens may not be termed securities, facilitating institutional concerns, and its approval of redemptions in nature of spot-crypto-ETFs are expected to reduce costs, improve liquidity and limit forced sales during large withdrawals.
JPMorgan suggested that Ether Holdings in both ETFs and corporate chains could increase further and point to Bitcoin’s higher proportion of circulating supply locked across both categories as a benchmark.
Read more: Ether resurgence gets steam supported by spot ETF demand and growth on the chain: Citi
