JPMorgan Reveals Shocking Outflows in Ether ETFs Compared to Bitcoin

Ether ETFs Underperforming

According to a recent report by JPMorgan, ether spot ETFs have faced net outflows of $500 million since their launch last month. This contrasts sharply with the successful launch of spot bitcoin ETFs, which garnered over $5 billion in inflows during the same period.

Disappointing Grayscale Trust Performance

The Grayscale Ethereum Trust has seen even more significant outflows, totaling $2.5 billion, which was much higher than JPMorgan's initial expectation of $1 billion. This shift occurred as it transitioned from a closed-end fund to a spot ETF. In response, Grayscale launched a mini ether ETF, which has only attracted $200 million in inflows so far.

Asset Managers Eye Combined ETFs

JPMorgan noted a growing interest among asset managers for a combined ETF that provides exposure to both bitcoin and ether, due to the weaker demand for ether ETFs. Factors contributing to this include bitcoin's first mover advantage, the absence of staking, and lower liquidity making ether less appealing to institutional investors.

Retail vs. Institutional Ownership

The report also indicated that ownership of spot bitcoin ETFs among institutional and retail investors has remained stable since the first quarter, with retail investors holding about 80% of the assets. Most new spot bitcoin ETFs are likely purchased by retail investors directly or through investment advisors.