In the cryptocurrency world, Ethereum and other altcoins continue to lag behind Bitcoin’s performance. According to JPMorgan’s latest research, Ethereum’s price movements and institutional investment flows have consistently lagged Bitcoin since the industry’s broad de-risking period in October 2025.
Clear difference between Ethereum and Bitcoin
In 2024, global markets were generally under pressure due to inflation concerns and decreasing risk appetite. However, Bitcoin’s recovery process was remarkably rapid. The research team, led by JPMorgan executive director Nikolaos Panigirtzoglou, pointed out that the difference between the two assets has widened, especially with the preferences of institutional investors. Spot Bitcoin ETFs have recaptured nearly two-thirds of past outflows; spot Ether ETFs recovered only about a third of their losses.
To understand this difference more clearly, a summary comparison of ETF performances is given below:
| Presence | ETF Capital Buyback |
|---|---|
| Bitcoin | About 66% |
| Ethereum | around 33% |
Institutional investors and network updates
According to JPMorgan’s review, both crypto measurement funds and commodity advisors have slightly reduced their positions in Bitcoin and Ethereum.
The expectation on the Ethereum front focuses on important scalability updates such as Glamsterdam and Hegota next year. As with previous major network updates, analysts think it will be difficult for new developments to provide significant momentum to on-chain usage.
Mini glossary: ETF (Exchange Traded Fund) is a financial product that offers an asset or basket of assets in the form of shares that can be traded on an exchange. In spot ETFs, the underlying asset itself is physically held, ensuring that movements in price are reflected exactly in the fund price.
DeFi and the institutional trust problem
A separate report by JPMorgan states that recurring security vulnerabilities have hindered institutional capital inflows in the decentralized finance (DeFi) space. Traditional financial institutions are cold towards the DeFi ecosystem due to increasing risks; Individual events lead to wider liquidity fluctuations in a short time.
“Repeated security breaches significantly limit the capital allocation of large institutions representing traditional finance in the DeFi ecosystem,” JPMorgan researchers evaluated.
Corporate Bitcoin purchases are at the forefront
The research unit has also highlighted recent large company investments in Bitcoin. In particular, the software company, which changed its name to MicroStrategy and operates as Strategy, draws attention in expanding its assets. According to JPMorgan calculations, it seems possible that Strategy will purchase a total of $30 billion for Bitcoin in 2026 if it maintains its current purchasing pace.
MicroStrategy stands out as an enterprise software company that is traded on Nasdaq and has long held large amounts of Bitcoin on its balance sheets. The company’s aggressive Bitcoin purchasing policy is often cited as an example in the market.
