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Morgan Stanley analysts say that Ethereum and altcoins may find it difficult to reverse the trend of underperforming Bitcoin in the short term without significant improvements in on chain activity, DeFi, and real-world applications. The report points out that spot Bitcoin ETFs have recovered about two-thirds of fund outflows, while spot Ethereum ETFs have only recovered about one-third. CME data shows that Bitcoin futures holdings are close to complete recovery, but Ethereum futures holdings are still below previous levels. Analysis suggests that the lack of stronger fundamental support is the reason for the relative weakness of ETH and altcoins.