JPMorgan Pours Cold Water on Ethereum

As an analyst with over two decades of experience in traditional finance and emerging markets, I find myself intrigued by JPMorgan’s recent assessment of Ethereum. Having witnessed the meteoric rise of Bitcoin and gold as safe-haven assets, it is understandable that institutions would gravitate towards them amidst concerns about fiat currency debasement.


Major banking institution JPMorgan has expressed skepticism towards Ethereum (ETH), the second-largest cryptocurrency, by stating that there seems to be a lack of bullish momentum in its derivatives market.

It’s been pointed out by JPMorgan that significant financial institutions often view Bitcoin and gold as analogous investment options.

The mentioned assets’ performance is influenced by a strategy known as “debasement trade”. Investors tend to wager on gold and its digital counterpart, mainly due to ongoing worries about increasing government debt and the slow loss of confidence in traditional currency systems. Gold and Bitcoin are also considered as options for diversifying investments.

Contrarily, Ethereum isn’t participating in the current “debasement trade,” which is the reason for its recent underperformance.

In May, the cost of Ether surged due to the approval of several exchange-traded products, which fueled its upward trend.

Nevertheless, the rally proved short-lived, resulting in the Ethereum ETF experiencing disappointing results, with withdrawals happening on the second day of its trading operations.

According to U.Today, Robert Mitchnick, who leads digital assets at BlackRock, has pointed out that Ethereum’s story doesn’t measure up to Bitcoin when it comes to the sluggish performance of the iShares Ethereum Trust ETF (ETHA). He emphasized that BlackRock is working on enlightening investors about the key cryptocurrency.

In August, JPMorgan noted that the outflows logged by Ethereum ETFs ended up being substantially higher than initially anticipated. 

Last month, the ETH/BTC pair dropped to the lowest level since early 2021.

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2024-10-03 21:56