Spot Ether ETFs Expected to Have Lower Demand Compared to Bitcoin ETFs

• Spot ether ETFs to have lower demand than bitcoin due to first mover advantage.
• JPMorgan predicts up to $3 billion inflows for ether ETFs this year.
• Ethereum ETFs close to approval in the U.S., awaiting SEC clearance.
• No similar demand catalyst for ether as seen with bitcoin reward halving.
• Ether's value proposition differs from bitcoin, appealing less to institutional investors.
• Launch of spot ether ETFs may lead to negative market reaction and ETHE outflows.

Summary :
According to a research report by JPMorgan, spot ether exchange-traded funds (ETFs) are expected to have much lower demand compared to bitcoin ETFs. The report states that bitcoin has the advantage of being the first mover in the market, potentially saturating the overall demand for crypto assets. JPMorgan predicts that spot ether ETFs could attract up to $3 billion in net inflows for the rest of the year, and potentially up to $6 billion if staking is permitted. However, the report highlights that the lack of a similar demand catalyst for ether, like the bitcoin reward halving, and the absence of staking options make ether ETFs less attractive compared to other platforms. Additionally, the report notes that the lower liquidity and assets under management of ether's spot ETFs make them less appealing to institutional investors compared to bitcoin ETFs. The market's initial reaction to the launch of spot ether ETFs is expected to be negative, as speculative investors who bought the Grayscale Ethereum Trust in anticipation of its conversion to an ETF are likely to take profit, potentially leading to outflows and downward pressure on ether prices.

Sources :

- Coindesk