According to "CoinDesk", JPMorgan Chase said in a research report on Wednesday (28th) that Ethereum spot exchange-traded funds (ETFs) have generally shown net fund outflows since their launch last month, which is consistent with the situation at the beginning of this year. This contrasts with the more successful launch of the Bitcoin Spot ETF.
The Ethereum Spot ETF began trading in the United States on July 23, approximately six months after the Bitcoin Spot ETF launched. According to the J.P. Morgan team, within five weeks of each fund’s launch, the Ethereum ETF experienced net outflows of approximately $500 million, while the Bitcoin ETF saw over $5 billion in net inflows.
JPMorgan Chase said that the weak performance of the Ethereum spot ETF was to some extent expected, pointing out that Bitcoin’s “first mover advantage”, lack of staking, and lower liquidity mean that institutional investment less attractive.
However, the $2.5 billion net outflow from the Grayscale Ethereum Trust Fund (ETHE) was unexpected. The investment bank originally expected that the fund would convert from a closed-end fund to a spot ETF, and there should be an outflow of about $1 billion. JPMorgan Chase pointed out that Grayscale also launched a mini Ethereum ETF to deal with the outflow of funds from ETHE, but the ETF only recorded an inflow of US$200 million.
The team led by Nikolaos Panigirtzoglou wrote:
“With demand for Ethereum spot ETFs weaker than Bitcoin, asset managers appear to be increasingly interested in applying for a combined ETF that provides exposure to Bitcoin and Ethereum.”
The investment bank added that the holdings of Bitcoin spot ETFs by institutions and retail investors have not changed much since the first quarter, with retail investors holding about 80% of the shares. Most of the new Bitcoin spot ETFs may be owned by retail investors. Purchased directly or indirectly through investment advisors since launch.
