JPMorgan invests $100 million to launch the MONY fund focusing on Ethereum, and market reactions remain cautious

JPMorgan Chase is once again increasing its involvement in the blockchain finance sector. According to The Wall Street Journal, this globally largest bank by market value has officially launched its first Ethereum-based tokenized money market fund, MONY, and plans to inject $100 million of its own funds. External investors are expected to participate in subscriptions starting December 16. This move is seen as an important signal of traditional financial institutions’ growing recognition of Ethereum (ETH) as a foundational infrastructure for institutional-grade finance.

From a strategic perspective, JPMorgan’s choice of Ethereum as the underlying public chain highlights its advantages in smart contracts, security, and ecosystem maturity. As the tokenization of real-world assets (RWA) accelerates, Ethereum is gradually becoming the core platform for institutions to test and deploy on-chain financial products.

However, increased institutional confidence has not yet fully translated into secondary market price performance. Data shows that despite rising participation from whales and institutions, the US spot Ethereum ETF has recently experienced net outflows, with approximately $224 million worth of ETH withdrawn in a single day. This indicates that some large funds are still prioritizing risk control in the short to medium term, opting to reduce positions or stay on the sidelines rather than continue to add.

On-chain exchange data presents a more complex picture. Over the past three days, inflows of ETH into exchanges have generally increased, often seen as early signs of potential accumulation phases. However, in the last 24 hours, inflow volumes have significantly decreased, ultimately falling to about $382,000, indicating a slowdown in short-term capital movement. CryptoQuant data shows that the average inflow has risen from 35 ETH to 42 ETH, suggesting that the long-term trend remains intact.

Meanwhile, the circulating supply of ETH continues to grow, currently totaling approximately 121.44 million coins. If demand growth does not accelerate in tandem, this supply expansion could exert short-term downward pressure on prices. Overall, the launch of institutional products like MONY, combined with increased whale trading activity, may gradually boost Ethereum demand, but the market will need time to digest its valuation reassessment.