According to CoinDesk, JPMorgan stated in a research report on Thursday (30th) that the demand for Ether spot ETFs will be much lower than that of similar Bitcoin fund products due to various reasons. The report, written by JPMorgan analyst Nikolaos Panigirtzoglou, stated that although the U.S. Securities and Exchange Commission (SEC) approved the 19b-4 proposal related to Ether spot ETFs last week, investors still need to wait for the S-1 registration statement submitted by the fund issuer to be approved before trading such fund products. The Block reported on Thursday that the SEC has required Ether spot ETF issuers to submit their S-1 draft documents by Friday, and Bloomberg analysts expect it to be listed by the end of June as a reasonable possibility. Not including a pledge mechanism will reduce the attractiveness of Ether spot ETFs. JPMorgan also predicts that Ether spot ETFs will attract up to $3 billion in net capital inflows for the rest of this year, but the investment bank said that if such products are allowed to be pledged, the number could rise to $6 billion. The report pointed out that the Bitcoin halving in April this year was an additional catalyst for Bitcoin spot ETF demand, while Ether will not have a similar driving force in the future. The investment bank stated that compared with other platforms that provide pledge returns, approved Ether spot ETFs without a pledge mechanism will also reduce the attractiveness of such products. The author wrote that Ether, as an application token, has a different value proposition to investors than Bitcoin, and Bitcoin has a broader appeal by competing with gold in portfolio allocation. JPMorgan also pointed out that lower liquidity and lower assets under management (AUM) will make Ether spot ETFs less attractive to institutional investors compared to their larger competitors. The Grayscale Ethereum Trust (ETHE) may experience a $1 billion capital outflow. The initial response from the market to the launch of Ether spot ETFs may be negative, as speculative investors who bought the Grayscale Ethereum Trust (ETHE) in anticipation of its conversion to an ETF may take profits. The report stated that ETHE could experience a $1 billion capital outflow, putting downward pressure on Ether prices. According to a previous report by Zombit, cryptocurrency data provider Kaiko stated that if Grayscale’s ETHE follows a similar pattern to its Bitcoin Trust Fund (GBTC) in the first month after conversion, it could experience a daily average capital outflow of $110 million. Related report: Market experts: Ether spot ETF issuers canceling pledge plans may reduce attractiveness to such funds.
