JPMorgan: ETF flows, futures and weak network activity suggest upgrades may not restore sustained Ether demand; fresh exchange inflows, ETF outflows and technicals signal downside risks

first published 2026-05-15T06:45:53Z

JPMorgan analysts say Bitcoin has recovered much faster than Ether after the Iran-driven selloff: spot Bitcoin ETFs have reclaimed about two-thirds of outflows versus roughly one-third for spot Ether ETFs, and CME futures show institutional Bitcoin exposure nearly restored while Ether remains well below prior levels. The bank argues Ethereum upgrades over the past three years haven’t produced meaningful network activity growth; lower Layer-1 fees have reduced token burns, contributing to faster net Ether supply growth. JPMorgan also noted weaker DeFi activity, thinner market depth and repeated hacks, and questioned whether upcoming upgrades (Glamsterdam and Hegota) will be enough to revive sustained Ether demand.

AI Analysis

JPMorgan cites concrete market-flow and on-chain facts from the summary: ETF recovery ratios (≈2/3 BTC vs ≈1/3 ETH), CME futures positioning (BTC near prior institutional exposure; ETH well below), lack of meaningful network activity growth after upgrades, lower L1 fees reducing token burns (faster net supply growth), weaker DeFi activity, thinner market depth and repeated hacks; the bank questions whether upcoming upgrades will revive demand.

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