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JPMorgan predicts ‘negative’ market reaction to Ethereum ETF

The US Securities and Exchange Commission (SEC) approved the Bitcoin ETF spot in January this year. Their arrival was a landmark moment for the industry, sending BTC to an all-time high price just three months after its launch. However, JPMorgan does not expect similar success for a second cryptocurrency-based ETF in the United States.

JPMorgan Expects Ethereum ETF Launch to Be Disappointing

Since the beginning of the year, cryptocurrency-based ETFs have dominated discussions in the financial sector. With Juen rapidly approaching, there are already two approved offerings as the market prepares for more tokens to receive similar approvals. However, one notable bank has spoken out about the high expectations these investment vehicles are facing.

JPMorgan recently gave its prediction of a “negative” market reaction to the upcoming launch of Ethereum spot ETFs. In a recent report, the bank noted that the ETH iteration will not operate at the level that Bitcoin achieved when it emerged in January this year.

“Initial market reaction to the launch of a spot Ethereum ETF is likely to be negative,” analyst Nikolaos Panigirtzoglou said in a recent report. “We believe that demand for spot Ethereum ETFs will be a fraction of the demand for spot Bitcoin,” they added.

Since receiving approval this month, Ethereum has failed to increase in value. Indeed, the past seven days have seen the asset increase by just 2%, according to CoinMarketCap . There have been many experts predicting a new all-time high for Ethereum when the ETF goes live. However, institutions like JPMorgan have expressed the need to temper expectations in light of Bitcoin’s incredible success this year.

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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