JPMorgan: Bitcoin dey perform pass Ethereum as ETF flows dey lag

Published: 2026-05-20 05:47:35 |

JPMorgan talk say Bitcoin dey perform pass Ethereum for multi-year timeframe, and the gap fit still dey unless Bitcoin ETF flows versus ETH improve through stronger Ethereum on-chain activity, DeFi use and real utility. Main update: ETF capital recovery na big difference. Spot Bitcoin ETFs don recover about two-thirds of previous outflows after the October 2025 deleveraging, while spot Ether ETFs don only recover about one-third. This one support the “BTC vs ETH” performance spread. JPMorgan also yarn say regulated institutional positioning dey more supportive for BTC than for ETH, with crypto momentum funds/CTAs slight underweight on both — but relatively less supportive of ETH. On Ethereum fundamentals, the 2026 scalability upgrades (including “Glamsterdam” and “Hegota”) fit no be strong catalyst because earlier upgrades no raise on-chain demand significantly. DeFi growth dey plateau, TVL still under prior highs, and fee dynamics weaken as base fees fall after EIP-1559 — this one reduce ETH burn intensity and weaken the “ultrasound money” narrative. For risk-off institutions, repeated DeFi security exploits dey highlighted as liquidity-shock risk, so capital dey kept on the sidelines. For BTC tailwinds, JPMorgan flag big corporate allocation demand, estimating Strategy (MicroStrategy) fit buy about $30B of Bitcoin in 2026 if dem maintain the pace. Trading takeaway: expect Bitcoin go remain relatively stronger versus Ethereum until ETH on-chain usage and DeFi adoption translate into clearer fee and demand signals.

Neutral

JPMorgan note no be direct short-term catalyst for either coin price, but e reinforce one relative trade: BTC dey structurally favored against ETH because ETF flows don start to recover and ETH on-chain/DeFi momentum weak. Dat mean BTC fit remain relatively strong (and ETH dey under relative pressure) rather than make am clear bullish or bearish bet for both. For long term, if ETH activity/fees improve well e fit change the story, but near-term DeFi security risk and past upgrade underperformance keep the debate one-sided. So the likely impact on BTC vs ETH pricing na mixed: e dey supportive for BTC relative to ETH, but e no strong enough to call either coin strongly bullish or bearish.