📈 In the past few weeks, Ethereum (ETH) has consistently outperformed Bitcoin (BTC), attracting significant market attention. JPMorgan stated in its latest research report that this is not coincidental, but rather driven by four major structural benefits:

✅ ETF Mechanism Optimization

✅ Corporate finance departments entering the market

✅ Regulatory attitude has softened

✅ Potential staking rewards opened up

These factors not only explain ETH's recent strength but also outline a clearer path for its future growth.

🌐 One, Policy Promotion + Capital Diversification: ETH welcomes dual benefits

In July, the U.S. Congress passed the (GENIUS Act) stablecoin bill, releasing a more crypto-friendly policy signal. In the same month, the net inflow of spot Ethereum ETFs reached $5.4 billion, nearly matching that of Bitcoin ETFs.

As we enter August, capital flows have begun to diverge:

🔻 Bitcoin ETF sees slight capital outflow

🔺 Ethereum ETF still maintains net inflow

At the same time, the market is focusing on the (Crypto Market Structure Bill) set to be voted on in September, which is widely regarded as another institutional turning point following stablecoin legislation.

🧩 Two, Four Driving Forces: Why is ETH running faster?

JPMorgan analysts led by Nikolaos Panigirtzoglou believe that ETH's outperformance comes from the following four core drivers👇

1️⃣ Potential Open Staking Functionality

Currently, ETH adopts a PoS mechanism with a solo staking threshold of up to 32 ETH. If the SEC allows ETF products to initiate staking in the future, fund managers can generate additional returns for holders without requiring investors to manage nodes themselves.

🔑 This means that ETH ETF can upgrade to 'interest-bearing passive investment tools', while BTC ETF lacks such revenue features.

2️⃣ Increased participation from corporate finance departments

Currently, about 10 listed companies have included ETH in their balance sheets, accounting for approximately 2.3% of the total circulation. More importantly, these companies are not merely 'buy and hold', but are also:

✅ Build validation nodes to earn staking rewards

✅ Participate in liquid staking or DeFi strategies to enhance capital efficiency

📌 ETH is transitioning from a 'speculative asset' to an 'enterprise sustainable asset allocation tool', while BTC remains in the early stages of this transition.

3️⃣ Regulatory attitude towards LST (liquid staking tokens) is warming up

In the past, the SEC's stance on the compliance of LSTs such as Lido and Rocket Pool was ambiguous, raising concerns among institutions. However, recent signals from SEC staff indicate that they might not necessarily be viewed as securities, significantly restoring market confidence.

This has opened the door for previously cautious institutional capital, injecting more potential funds into ETH staking and derivatives ecosystem.

4️⃣ ETF physical redemption mechanism approved

The SEC recently approved BTC and ETH ETFs supporting 'physical redemption', allowing investors to directly redeem the underlying assets instead of cash settlement.

This brings three major benefits:

⚡ Improve Efficiency

💧 Enhance Liquidity

🛡 Reduce Selling Pressure

Although both BTC and ETH have received favorable policies, JPMorgan believes that due to ETH's lower institutional holding base, there is greater marginal growth potential.

🚀 Three, Looking Ahead: Has ETH's potential already surpassed BTC?

JPMorgan pointed out in its research report:

📊 ETF Adoption: The current scale of ETH ETF funds is still lower than BTC, but once staking functionality opens, it may attract more long-term capital.

🏢 Corporate Adoption: BTC has been widely included in corporate asset allocations, while ETH is still in its infancy, presenting significant growth potential.

🛠 Ecological Applications: ETH is not just an asset; it is the infrastructure for diverse applications such as DeFi, NFT, stablecoins, and on-chain AI, with a richer array of use cases.

In summary:

🔹 BTC is 'digital gold'

🔹 ETH is growing into 'the infrastructure of the digital economy'

✅ Conclusion

JPMorgan's perspective clearly points out that Ethereum's rise is not a result of speculative impulse, but rather a fourfold resonance of institutional benefits + structural upgrades + deepened applications + optimized revenue models.

As policies clarify, ETF functionalities enhance, and corporate participation deepens, Ethereum may be at a critical turning point of 'transitioning from asset to infrastructure'.

In the future, the main theme of the crypto market may shift from 'single value storage' to 'multi-dimensional application ecosystem', with Ethereum as one of the key players in this transition. 💡

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