JPMorgan's recent report highlights that Ether (ETH) has outperformed Bitcoin (BTC) due to strong inflows into spot exchange-traded funds (ETFs) and growing corporate treasury allocations. In July, Ether ETFs saw record inflows of $5.4 billion, nearly matching Bitcoin's inflows. While Bitcoin ETFs have faced modest outflows in August, Ether funds continue to attract investments. Key factors driving this demand include anticipated SEC approval of staking for Ether ETFs, which would generate yields and decrease technical barriers, alongside rising corporate holdings of Ether, now totaling approximately 2.3% of the circulating supply across ten publicly traded firms. The SEC's stance on liquid-staking tokens not being classified as securities has also alleviated institutional fears. Furthermore, potential SEC approval of in-kind redemptions for Ether ETFs could lower costs and enhance liquidity, strengthening Ether's market position relative to Bitcoin. JPMorgan expects Ether holdings in both ETFs and corporate treasuries to rise further, indicating a shift in market dynamics in favor of Ethereum.

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