Those expecting spot Ethereum ETFs to see the kind of cash pouring into them the way they did for their bitcoin counterparts may be disappointed, according to analysts from JPMorgan.
"We believe the demand for spot ethereum ETFs would be a fraction of that seen for spot bitcoin," the JPMorgan analysts wrote, listing several reasons why they see spot ether ETFs not being in league with those of bitcoin. Another reason they cited was that bitcoin's halving event, which occurred a month ago, " acted as an additional demand catalyst for spot bitcoin ETFs." While Ethereum's proof-of-stake consensus mechanism doesn't have a similar event, it should be noted that bitcoin's next halving won't occur until 2028.
The researchers also see bitcoin's role as "competing with gold in portfolio allocations," something that ether, positioned as a token for applications, comes up short. Lower liquidity in ether, the second-largest cryptocurrency based on market capitalization, also makes it less desirable to hedge and quant funds, they maintain.