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JPMorgan comes out in support of ETH, calls it a better bet than BTC

Updated: Feb 4, 2025
Published: Nov 24, 2021
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JPMorgan Chase, a global investment bank, recently expressed support for Ethereum over Bitcoin, citing Ethereum’s broad utility and superior growth potential as key factors.

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While Bitcoin is widely viewed as ‘digital gold’ with a market cap exceeding $1.7 trillion, JPMorgan believes Ethereum’s diverse applications—from decentralized finance (DeFi) to non-fungible tokens (NFTs)—make it a more attractive long-term investment.

JPMorgan claims that Ethereum offers better utility

According to a recent statement, JPMorgan sided with Ethereum over Bitcoin, claiming that the world's second-biggest cryptocurrency with a more than $500 billion market cap offers more utility and insight into blockchain technology than BTC itself.

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Ethereum is already taking over the entire DeFi industry, providing increased exposure to smart contracts and NFTs as well. Supporting countless projects, the ETH network has seen a huge surge in activity in the recent period.

With Ethereum deriving its value from its applications, ranging from DeFi to gaming to NFTs and stablecoins, it appears less susceptible than Bitcoin to higher real yields," JPMorgan said.

Why JPMorgan Believes Ethereum is a Better Investment Than Bitcoin (ETH vs. BTC)

JPMorgan has recently indicated that Ethereum may be a more favourable investment than Bitcoin based on several key factors:

Analysts at JPMorgan highlighted that Ethereum has consistently outperformed Bitcoin in terms of percentage growth over recent years. 

For instance, in 2021, Ethereum grew over 500%, while Bitcoin's growth was around 96%. This trend suggests that Ethereum could continue to gain market share and potentially surpass Bitcoin in market capitalization in the coming years.

Moreover, As per a recent survey that uk.investing.com conducted, as many as 52% of people would be good with holding ETH for the long term. On the contrary, only 48% agreed with holding BTC.

Furthermore, Ethereum is showing no signs of slowing down in terms of adoption as the ETH 2.0 launch nears. As ETH shifts from Proof-of-Work to Proof-of-Stake, investors aim for ETH to rise to double digits in the near future. 

Last month, we also saw Ethereum overtake the market capitalization of JPMorgan and is currently the world's 15th biggest asset. The half-trillion market cap of the cryptocurrency shows its promising future. 

In addition to being $10 billion ahead in the market cap of JPMorgan, Ethereum is also ahead of the world's biggest payment service providers like PayPal, Visa, and even Mastercard.

Debate on Social Platforms

A Reddit post supported JPMorgan's view, saying that Ethereum is more useful and flexible than Bitcoin. 

Reddit post

Unlike Bitcoin, which is mostly seen as "digital gold," Ethereum is widely used for decentralized finance, NFTs, and gaming, making it an important platform for new types of applications and more attractive to investors.

What is JPMorgan Ethereum

"JPMorgan Ethereum" generally refers to JPMorgan Chase's use of the Ethereum blockchain technology for financial applications. JPMorgan has been a significant player in exploring blockchain technology and has built solutions that leverage the Ethereum network's capabilities, notably through a blockchain platform called Quorum.

Here’s an overview of JPMorgan's involvement with Ethereum:

1. Quorum Platform

Quorum is an enterprise-focused variant of the Ethereum blockchain that was developed by JPMorgan. It's designed to be a permissioned blockchain, meaning it’s suitable for enterprise use where only authorized participants can access the network.

JPMorgan developed Quorum to enable private transactions and faster performance for financial applications. It leverages Ethereum's open-source technology but is adapted to meet the needs of businesses, particularly in terms of security, privacy, and scalability.

Quorum has been used by JPMorgan for internal banking processes and applications, including its interbank payment system, which aims to streamline payments among financial institutions.

2. ConsenSys Acquisition of Quorum

In August 2020, ConsenSys, a blockchain software company, acquired Quorum from JPMorgan. This move allowed ConsenSys to continue the development and support of Quorum while integrating it with its own suite of Ethereum-based tools.

After the acquisition, JPMorgan continues to collaborate with ConsenSys to enhance the Quorum platform and explore blockchain applications, particularly for institutional use.

Quorum

3. JPM Coin

JPM Coin is a digital currency developed by JPMorgan on its Quorum network. It's designed to facilitate instant cross-border payments and improve liquidity within its network of institutional clients.

JPM Coin is pegged to the U.S. dollar and operates within a private, permissioned blockchain environment. It’s primarily used for wholesale payments between JPMorgan’s clients, not for retail customers.

4. Blockchain Partnerships and DeFi

JPMorgan has shown increasing interest in decentralized finance (DeFi) and other blockchain applications. Recently, they have been exploring how Ethereum-based DeFi protocols and technologies could be adapted to meet institutional needs.

JPMorgan has experimented with tokenizing assets, using smart contracts, and exploring the potential of Ethereum-based decentralized applications (dApps) for trade finance, supply chain finance, and other areas.

Ethereum: The Smart Investor’s Choice 🚀

JPMorgan sees Ethereum as a better bet than Bitcoin—and they’re not alone. With its dominance in DeFi, NFTs, and the shift to Proof-of-Stake, ETH’s potential is massive. Want to stay ahead of the curve?

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