Bitcoin ETFs were launched in January 2024, and have enjoyed a first-mover advantage over their Ethereum-based counterpart.
According to a new report from JPMorgan, liquidity flow into Ethereum ETFs in the US is expected to be much lower than expected.
A research report cited by CoinDesk indicates that JPMorgan, the leading American banking institution, adopts a pessimistic stance towards Ethereum ETFs.
Experts led by Nikolaos Panigirzoglou concluded that the demand for these funds may be much lower compared to Bitcoin ETFs.
Analysts explained that the launch of the Bitcoin ETF may have already saturated the overall demand for cryptocurrency assets by institutions interested in ETFs.
The report forecasts an inflow of just $3 billion into all Ethereum ETFs.
If a staking mechanism is allowed for asset managers launching these funds, this number could rise to $6 billion.
However, due to regulatory pressure from US authorities, ARK Invest and 21 Shares removed the staking feature from documents filed with the Securities and Exchange Commission (SEC).
