4 Top Reasons Why Ethereum Beats Bitcoin

According to the latest report from JPMorgan, Ethereum ETF funds attracted a record $5.4 billion in July, matching Bitcoin ETF funds for the first time. However, while Bitcoin funds experienced modest outflows in August, Ethereum products continued to record a steady inflow, indicating increasing demand from investors. The superiority of ETH has been most evident since July, when the United States passed the GENIUS Act, creating a legal framework for stablecoins (stablecoin). Analysts believe that the expectations for another groundbreaking cryptocurrency market structure bill, expected to be announced in September, further strengthen confidence. Why Ethereum Beats Bitcoin JPMorgan has outlined four main reasons why Ethereum is leading: The staking potential for ETF – Market watchers expect the SEC to eventually approve the staking feature for spot ETH ETFs, allowing investors to earn profits without the standard minimum of 32 ETH. Adoption of Corporate Treasury – About 10 public companies are currently holding Ethereum on their balance sheets, accounting for 2.3% of the circulating supply. Some companies plan to operate validators to receive staking rewards, while others are exploring liquidity staking. Staking involves actively participating in transaction validation similar to mining coin on a PoS-based blockchain. Users holding the required minimum balance of a specific cryptocurrency can validate transactions and receive rewards. This reward is set by the network and then sent to the user's wallet. > Staking strategies and DeFi profits. Regulatory clarity for staking tokens – The SEC has signaled informally that liquidity staking derivative products may not qualify as securities, easing some concerns for institutions, although this stance has not yet been formalized. Physical redemption for ETF – The approval by regulators for physical redemption for both Bitcoin and Ethereum ETFs allows institutions to redeem shares directly with cryptocurrency instead of cash. Analysts say this helps reduce costs, increases efficiency, and prevents forced liquidation when withdrawing large amounts. Space for Development Although Bitcoin still dominates the investment portfolios of businesses and organizations, JPMorgan's research team believes that Ethereum has plenty of room for growth. With ETF funds accelerating adoption and treasury bond funds gradually adding ETH, analysts suggest that this asset could see a significant influx of capital in the coming months if the current growth momentum continues.