JPMorgan: Spot Ethereum ETFs Will Have a Negative Impact on Market

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Analysts at JPMorgan do not anticipate that the launch of spot Ethereum ETFs will generate the same level of demand as the launch of spot Bitcoin ETFs, as investors may be disappointed by the slower pace of cash flow.

They believe that the initial market response to spot Ethereum ETFs will be negative, as evidenced by the fact that only one page in a 25-page report was dedicated to Ethereum-related commentary.

Compared to spot Bitcoin ETFs, which saw record-breaking inflows of $10 billion in assets under management in a matter of weeks from products by BlackRock and Fidelity, the demand for spot Ethereum ETFs is expected to be significantly lower.

This is due in part to Bitcoin’s “first mover advantage”, which attracted a large portion of investor demand for crypto assets when spot Bitcoin ETFs were first approved.

As a result, analysts at JPMorgan do not expect spot Ethereum ETFs to experience the same level of success as their Bitcoin counterparts.