Institutional Investors Prefer Ethereum Over Bitcoin, Says JPMorgan – Bitcoin – US Dollars ($ BTC), Ethereum – US Dollars ($ ETH)
Institutional investors are more interested in ether (CRYPTO: ETH) futures as Bitcoin (CRYPTO: BTC) according to JPMorgan analysts.
What happened: According to an analyst note, BTC futures are on the Chicago Mercantile Exchange traded below the price of a spot BTC, Business Insider reported.
See also: How to Buy Ethereum (ETH)
“This is a setback for Bitcoin and a reflection of weak demand from institutional investors who tend to use regulated CME futures contracts to gain exposure to Bitcoin,” the New York-based bank said.
On the other hand, institutional investors have been attracting ETH since August. Citing CME data, JP Morgan pointed out that the average 21-day ETH futures premium has increased 1% compared to actual ETH prices.
According to the bank, this is an indicator of a “strong divergence in demand”.
“This indicates a much healthier demand for Ethereum over Bitcoin by institutional investors,” wrote the JPMorgan analysts, according to Business Insider.
Why it matters: Both BTC and ETH performed poorly over the week, with the top cryptocurrency down 7.13% and ETH down 13.04%, despite growing interest from major investors in ETH futures.
See also: Ethereum has already outperformed Bitcoin based on dollar holdings: Celsius CEO Alex Mashinsky
Institutional investors have been moving towards Ethereum futures lately, with the coin’s “London” upgrade being a major factor last month.
After the upgrade, ETH was expected to burn over $ 5 billion in a year, which has attracted cops and institutions to cryptocurrency.
Such a dynamic has also fueled expectations of a possible flippening if BTC is overtaken by ETH.
Price action: At press time, BTC was trading 0.93% up at $ 44,533 and ETH down 0.04% at $ 3,099.77 over 24 hours.
Read on: Bitcoin, Ethereum, Dogecoin chart recovery with Twitter push, even if “fear” grips investors