One of the most prominent banks in the world, JPMorgan, has predicted a “negative” market response to the impending arrival of Spot Ethereum ETFs. Indeed, the bank has forecast a noticeable decline in demand for the ETH investment product as opposed to Bitcoin’s offering.
The US Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs in January of this year. Their arrival was a landmark moment for the industry, leading BTC to an all-time high in price just three months after its debut. However, JPMorgan doesn’t expect similar success for the second crypto-based ETF in the United States.
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JPMorgan Expects Disappointed Ethereum ETF Debut
Since the start of the year, crypto-based ETFs have dominated discourse in the finance sector. With Juen fast approaching, there are already two approved offerings as the market prepares for even more tokens to receive similar approvals. However, one notable bank has spoken out about the high expectations these investment vehicles are facing.
JPMorgan has recently stated its prediction for a “negative” market response to the impending launch of spot Ethereum ETFs. In a recent report, the bank noted that the ETH iteration will not perform on the level that Bitcoin did when it arrived in January of this year.
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“The initial market reaction to the launch of Spot Ethereum ETFs is likely to be negative,” analyst Nikolaos Panigirtzoglous said in a recent report. “We believe that demand for spot Ethereum ETFs would be a fraction of that seen for spot Bitcoin,” they added.
Since it received approval this month, Ethereum has failed to surge in value. Indeed, the last seven days have seen the aset increase by only 2%, according to CoinMarketCap. There have been many experts who predict a new all-time high for Ethereum when the ETF goes live. However, entities like JPMorgan have expressed the need to temper expectations amid Bitcoin’s astonishing success this year.