JPMorgan Reveals Why Ethereum Is Gaining Ground on Bitcoin

Highlights:

• JPMorgan analysts identify four key factors fueling Ethereum’s performance.
• Spot Ether ETFs hit $5.4B in July inflows, equal to Bitcoin’s ETF performance.
• ETH ETFs hold 6.42 million ETH worth $27.66B, representing 5.31% of supply.

Ethereum (ETH) has recently outpaced Bitcoin (BTC), according to JPMorgan analysts. They attribute this performance to factors like ETF inflows, clearer regulations, increasing corporate adoption, and enhanced ETF structures. Ethereum ETFs saw a record $5.4 billion in inflows in July, matching Bitcoin’s performance for the month. While Bitcoin ETFs experienced minor outflows in August, Ethereum ETFs continued to attract substantial capital. Ethereum’s outperformance has been especially noticeable after the U.S. passed the GENIUS Act stablecoin law in July. Investors are also keeping an eye on an upcoming crypto regulation bill, anticipated by September.

JPMorgan Outlines Key Drivers Behind Ethereum’s Growing Momentum

JPMorgan identified four main reasons why Ethereum is gaining momentum. First, the potential to stake in ETH ETFs is generating increasing investor interest. Market experts expect the SEC to eventually approve staking features for spot ETH ETFs, which would allow investors to earn yields without needing the typical 32 ETH minimum.

Second, corporate treasury adoption is growing. Around 10 public companies now hold Ethereum on their balance sheets. This accounts for about 2.3% of the circulating supply. Some of these companies plan to operate validators for staking rewards. Meanwhile, others are exploring DeFi yield strategies.

Furthermore, certainty from the authorities regarding staking tokens facilitates building up of the Ethereum network. JPMorgan highlighted the fact of the SEC staff-level guidance, which means liquid staking tokens are not securities. Institutional concerns were thereby assuaged, even though it’s not a regulation yet. The last determining factor is approval of in-kind redemptions of both BTC and Ethereum ETFs. In-kind redemptions allow the institutions to redeem shares in crypto, not in cash.

JPMorgan analysts predict Ethereum has stronger growth prospects than Bitcoin, especially in ETF and corporate treasury adoption. Although BTC currently leads in institutional ownership, Ether’s corporate uptake is still in early stages. If these trends persist, Ethereum is likely to attract more investments.

ETH ETF Reserves Reach $27.66 Billion

According to the Strategic ETH Reserve (SER) tracker, spot Ethereum ETFs currently hold a total of 6.42 million ETH, valued at $27.66 billion. These ETFs experienced a daily net inflow of 66,350 ETH, pushing their overall reserves to 5.31% of Ethereum’s circulating supply. In addition to ETFs, corporate treasuries and long-term institutional holdings now amount to 4.10 million ETH, valued at $17.66 billion. This represents 3.39% of Ethereum’s total supply.

Notably, companies like SharpLink Gaming have been active in expanding their ETH holdings. Recently, SharpLink purchased $667 million worth of Ethereum at near-record prices, bringing its total holdings to over 740,000 ETH, valued at $3.2 billion. SharpLink is now the second-largest corporate holder of Ethereum, behind Bitmine Immersion Tech, which holds 1.5 million ETH.

Recently, BitMEX co-founder Arthur Hayes forecasted that ETH could reach between $10,000 and $20,000 before the current market cycle concludes. When asked to compare Ethereum and Solana, Hayes favored Ethereum. He believes both will see price increases. Hayes also mentioned how sentiment has shifted, from negative views on Ethereum two months ago to current optimism.

Arthur Hayes just admitted he bought back ETH because “the chart says it’s going higher.”

He sees Ethereum running up to $20K this cycle.

When asked $ETH vs $SOL?

He’s overweight $ETH pic.twitter.com/Yd3q1t0aCe

— SamAlτcoin.eth (@SamAltcoin_eth) August 21, 2025

The second-largest cryptocurrency is priced at $4,282, reflecting a 0.20% rise in the last 24 hours. Its market capitalization is $516.78 billion, with a 16% decline in trading volume, now at $36.69 billion. Over the past month, ETH has risen 16%, but it has fallen by 8% over the past week.