According to JPMorgan, there are 4 catalysts that triggered the rise in the ETH/BTC pair

Ethereum has outperformed Bitcoin in recent weeks, and JPMorgan analysts attribute this move to four main factors.

These include the anticipated staking approval for spot Ethereum ETFs, corporate treasury purchases, SEC statements alleviating concerns about liquid staking tokens, and ETF rule changes that increase efficiency and liquidity.

Ethereum has outperformed $BTC Bitcoin in recent weeks. This strong recovery, which was significantly weaker than Bitcoin during the rally fueled by the US elections in November, is attributed to a combination of demand for exchange-traded funds, increased corporate treasury strategies, regulatory clarity, and structural ETF improvements, according to JPMorgan analysts.

Ethereum has outperformed Bitcoin since the US passed the GENIUS Act stablecoin legislation in July. Furthermore, investors remain optimistic as another landmark crypto bill is expected to be approved by September.

Ethereum ETFs saw record inflows of $5.4 billion in July, matching Bitcoin ETFs. JPMorgan analysts led by Nikolaos Panigirtzoglou added that while spot Bitcoin ETFs saw small outflows in August, spot Ethereum ETFs continued to attract capital.

Four Key Catalysts

JPMorgan analysts highlighted four factors behind Ethereum's recent outperformance. First, the market is awaiting the U.S. Securities and Exchange Commission's approval of staking for spot Ethereum ETFs. This approval will allow asset managers to earn staking returns without requiring investors to hold a minimum of 32 $ETH .

Second, more and more companies are building institutional ETH treasuries: Approximately 10 publicly traded companies currently hold ETH on their balance sheets, representing 2.3% of the current circulating ETH supply.

Third, the SEC issued statements implying that liquid staking tokens could not be considered securities. Analysts noted that these staff-level clarifications, while not yet enacted, alleviated institutional concerns.

Fourth, the SEC approved a new rule in July for spot Bitcoin and Ethereum ETFs that will allow institutions to redeem ETF shares directly with crypto assets rather than converting them into cash.

Simply put, with the SEC's new approval, Bitcoin and Ethereum ETF investors will now be able to return their ETF holdings to the funds and purchase Bitcoin and Ethereum in return.