JPMorgan has highlighted Ethereum's struggle to keep pace with Bitcoin, citing weak on-chain activity and demand as key factors. The bank notes that while Ethereum's upcoming upgrades aim to improve scalability and reduce costs, these technical enhancements alone may not boost demand. Ethereum's spot ETFs have only recovered about one-third of outflows post-market pullbacks, compared to Bitcoin's two-thirds recovery. The bank also points out that CME Bitcoin futures positions have nearly returned to pre-drop levels, whereas Ethereum's recovery remains sluggish. JPMorgan attributes this persistent underperformance to factors such as low liquidity, insufficient market depth, and security incidents affecting the altcoin market. The bank suggests that regulatory developments, like the U.S. CLARITY Act, could potentially shift institutional preferences, but until then, Bitcoin remains the favored choice for institutional capital.