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The recent %Ethereum (CRYPTO: $ETH ) rally and outperformance of %Bitcoin (CRYPTO: $BTC ) has largely been driven by aggressive corporate buying, according to analysts at %JPMorganChase (NYSE: $JPM ).

Ethereum's price has also gotten a boost from strong inflows into spot exchange-traded funds (ETFs) and growing corporate treasury allocations, according to a report by JPMorgan.

In July of this year, spot Ethereum ETFs saw record inflows of $5.4 billion U.S. While Bitcoin ETFs have posted outflows in August, Ethereum funds continue to attract capital.

The bank's analysts point to four factors driving Ethereum's rally.

Investors are betting that the U.S. Securities and Exchange Commission (SEC) will eventually permit staking for spot Ethereum ETFs, which would turn them into yield-generating products.

Corporate demand is rising with about 10 publicly traded firms now holding Ethereum equal to a total of 2.3% of the circulating supply.

At the same time, the SEC's approval of in-kind redemptions for spot crypto ETFs is expected to reduce costs, improve liquidity, and limit forced selling.

JPMorgan Chase suggests that Ethereum holdings in ETFs and corporate treasuries could rise further in coming months, leading ETH to continue outperforming Bitcoin.

The report from JPMorgan comes as the crypto sector experiences a pullback, with Ethereum's price falling to $4,250 U.S. from nearly $5,000 U.S. at the start of August.