According to JPMorgan’s latest report, Ethereum ETFs attracted a record $5.4 billion in July, matching Bitcoin ETFs for the first time. But while Bitcoin funds saw modest outflows in August, Ethereum products continued to record steady inflows, signaling growing investor demand.
Ethereum’s dominance has been especially visible since July, following the passage of the GENIUS Act in the U.S., which created a clear legal framework for stablecoins. Expectations for another groundbreaking crypto market structure bill, expected this September, are further boosting confidence.
🔑 Why Ethereum is Beating Bitcoin
JPMorgan highlights four key reasons why ETH is pulling ahead:
Staking Potential for ETFs
Investors anticipate the SEC will eventually approve staking features for spot ETH ETFs, enabling passive returns without the 32 ETH minimum requirement. This could transform ETFs into yield-generating instruments, something Bitcoin cannot offer.
Corporate Treasury Adoption
About 10 public companies currently hold Ethereum on their balance sheets, representing 2.3% of circulating supply. Some are setting up validators for staking rewards, while others are exploring liquidity staking—signaling corporate trust in ETH as a productive asset.
Regulatory Clarity on Staking
The SEC has informally signaled that liquidity staking derivatives may not be considered securities. While not yet formalized, this easing of concerns makes ETH far more attractive for institutions than before.
In-Kind Redemption for ETFs
Regulators have approved in-kind redemption for both Bitcoin and Ethereum ETFs, but Ethereum stands to benefit more. This mechanism allows institutions to redeem shares directly for ETH instead of cash, lowering costs and preventing forced liquidations.
🚀 Room for Growth
While Bitcoin still dominates corporate and institutional portfolios, JPMorgan’s analysts believe Ethereum has much more room to expand. With ETFs accelerating adoption, corporate treasuries adding ETH, and favorable regulatory signals, Ethereum could see massive capital inflows in the months ahead if momentum continues.