Ethereum Outperforms Bitcoin: JPMorgan Chase Reveals Four Drivers JPMorgan's latest research report pointed out that Ethereum (ETH) has recently outperformed Bitcoin (BTC) due to four core factors: ETF structure optimization, corporate holdings, regulatory easing and potential liberalization of staking functions. These factors collectively drive Ethereum to show greater potential in capital inflows, institutional adoption, and ecological applications, which may reshape the crypto market landscape. 1. Market background: the two-wheel drive of policy and capital The passage of the GENIUS Act stablecoin bill in the United States and the strong performance of Ethereum spot ETFs ($5.4 billion in inflows in July and continued net inflows in August) provide policy and capital support for Ethereum. In contrast, Bitcoin ETFs have seen outflows, highlighting the divergence in market performance between the two. The upcoming vote on the "Crypto Market Structure Act" has further boosted market expectations for Ethereum. 2. Four major factors that make Ethereum outperform Bitcoin 1. Staking function potential Ethereum's PoS mechanism allows staking for yield. If the SEC approves ETF staking, holders can make profits without running nodes, making ETH ETFs a "yield-bearing" investment vehicle, better than Bitcoin ETFs with no native income. 2. Enterprises increase their holdings and participate in the ecosystem About 10 listed companies hold ETH (2.3% of the circulating supply), and some companies earn additional income by running nodes or participating in DeFi. Ethereum is shifting from a speculative asset to a long-term allocation tool for businesses, with more room for growth than Bitcoin. 3. Relax regulatory attitude The SEC's compliance concerns about liquid staking tokens (such as Lido, Rocket Pool) have weakened, and initial statements may not be considered securities. This clears barriers for institutional funds to enter the Ethereum ecosystem and accelerates capital inflows. 4ETF physical redemption mechanism The SEC approved physical redemptions for Ethereum and Bitcoin ETFs, improving efficiency, enhancing liquidity, and reducing selling pressure. Due to the low proportion of Ethereum institutional holdings, its marginal growth effect is more significant. 3. Future prospects: Ethereum's unique advantages • ETF popularity: Although the scale of ETH ETF funds is lower than that of BTC, it is expected to attract more long-term funds after the staking function is liberalized. • Enterprise adoption: Ethereum's enterprise holdings are still in its early stages, and there is huge room for incremental growth. • Ecological advantages: Ethereum carries applications such as DeFi, NFT, stablecoins, and AI on-chain computing, far surpassing Bitcoin's positioning as "digital gold" and becoming a "digital economy infrastructure". 4. Conclusion Eureum's strength stems from multiple drivers such as favorable policies, ETF optimization, institutional holdings, and ecological potential. JPMorgan believes that Ethereum is not only expected to close the gap with Bitcoin, but may even dominate the market in the future. This trend marks the transformation of the crypto market from a "store of value" to a "multi-dimensional application ecosystem", and Ethereum is becoming the "heart of the digital economy". $BMNR $SBET