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By Will Canny, AI Boost|Edited by Sheldon Reback
Updated Aug 21, 2025, 1:27 p.m. Published Aug 21, 2025, 12:54 p.m.
- Spot ether exchange-traded funds pulled in $5.4 billion in July, matching bitcoin ETFs and while bitcoin funds have since seen modest outflows, ether vehicles continue to draw capital, JPMorgan said.
- Anticipated SEC approval of staking for ether ETFs, corporate treasury purchases and regulatory clarity on liquid-staking tokens are driving demand, according to the report.
- The bank said SEC approval of in-kind redemptions for ether ETFs is expected to lower costs, boost liquidity and further strengthen ether’s positioning versus bitcoin.
Ether (ETH) has outperformed bitcoin
over the past month, buoyed by strong inflows into spot exchange-traded funds(ETFs)and growing corporate treasury allocations, Wall Street bank JPMorgan(JPM)said in a report on Wednesday.
The move comes in the wake of U.S. stablecoin legislation (the GENIUS Act) and ahead of an anticipated vote on a broader crypto market structure bill by the end of September, the report said.
STORY CONTINUES BELOW
In July, spot ether ETFs saw record inflows of $5.4 billion, nearly matching bitcoin ETF inflows over the same period. While bitcoin ETFs have posted modest outflows in August, ether funds continue to attract capital, JPMorgan noted.
The bank’s analysts pointed to four main factors behind ether’s recent strength.
Investors are betting the Securities and Exchange Commission (SEC) will eventually permit staking for spot ether ETFs, which would turn them into yield-generating products while lowering technical barriers for participation.
Corporate demand is also rising, the analysts noted, with about 10 publicly traded firms now holding ether equal to a total of 2.3% of the circulating supply. Some of these companies may seek additional income through staking or decentralized finance (DeFi) strategies.
At the same time, the SEC has signaled that liquid-staking tokens may not qualify as securities, easing institutional concerns, and its approval of in-kind redemptions for spot crypto ETFs is expected to reduce costs, improve liquidity and limit forced selling during large withdrawals.
JPMorgan suggested ether holdings in both ETFs and corporate treasuries could rise further, pointing to bitcoin’s higher share of circulating supply locked up across both categories as a benchmark.
Read more: Ether Resurgence Gains Steam Backed by Spot ETF Demand and On-Chain Growth: Citi
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
Will Canny is an experienced market reporter with a demonstrated history of working in the financial services industry. He’s now covering the crypto beat as a finance reporter at CoinDesk. He owns more than $1,000 of SOL.
“AI Boost” indicates a generative text tool, typically an AI chatbot, contributed to the article. In each and every case, the article was edited, fact-checked and published by a human. Read more about CoinDesk’s AI Policy.
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By Will Canny, AI Boost|Edited by Cheyenne Ligon
16 minutes ago
Stablecoin demand for Treasuries won’t meaningfully shift T-bill dynamics, but instead poses a bigger challenge to money market funds, the report said.
What to know:
- Stablecoin demand for Treasuries could reach $25–$75 billion in the next year, but BofA says it won’t meaningfully shift T-bill dynamics, instead posing a bigger challenge to money market funds.
- The bank said money market funds (MMF) see limited time to adapt, with some clients exploring tokenization as a defensive move before stablecoins find ways to offer yield.
- BNY Mellon and Goldman Sachs have recently rolled out tokenized MMF shares, the report noted.
