JPMorgan Analysts Say That Big Money Are Dumping Bitcoin For Ethereum
September 27 2021 - 12:00PM
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Ethereum has recently made its way into the radar of institutional
investors. More big money has been flowing into the digital asset
in recent months following the success of decentralized finance
(DeFi). With this much money coming in from institutional
investors, the value of ETH has seen significant growth in the past
couple of months. Data shows that institutional investors are
getting into Ethereum as early as possible, eliminating the
possibility of “missing the bus” when the cryptocurrency eventually
becomes an important part of traditional finance markets. Ethereum
being more valuable than top cryptocurrency bitcoin is a hotly
debated topic in the crypto space. Despite being the most valuable,
JPMorgan analysts have put forward that institutional investors are
moving away from bitcoin and taking more positions in ETH. As
crashes have rocked the market, the value of bitcoin has taken
numerous hits. And with these have come a relaxation of the highly
confident price predictions made for the asset. Related Reading
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Liquidations Institutional Investors Turn Away From Bitcoin Futures
Restrictions on the purchase of actual cryptocurrencies have left
institutional investors trading on crypto futures. Bitcoin futures
have seen much interest from the big investors who do not have to
invest directly in cryptocurrencies. But recent data shows that
these big-time investors are beginning to exit from Bitcoin futures
in favor of investing in Ethereum futures. ETH recovers
above $3,000 | Source: ETHUSD on TradingView.com JPMorgan analysts
released a note that contained their findings for the
cryptocurrency market. According to the analysts, the decreased
interest in bitcoin futures did not spell good news for the digital
asset. Explaining further, the analysts said, “This is a setback
for bitcoin and a reflection of weak demand by institutional
investors that tend to use regulated CME futures contracts toga
exposure to bitcoin.” Bitcoin futures have consistently traded
below the actual market price of the cryptocurrency on the Chicago
Mercantile Exchange, as institutional investors pull out and begin
to stake on Ethereum. Ethereum Currently Overvalued Last week, a
JPMorgan analyst had pointed out that at its current price,
Ethereum is currently overvalued. The analyst put the digital
asset’s value at $1,500, about 55% less than its current trading
range. But it seems that despite this low fair valuation, ETH is
still beating out top coin bitcoin for big money coming into the
market. Ethereum has also held up better in the face of recent
market crashes. Related Reading | Billionaire Mike Novogratz
Says He’s “Not Nervous” About Crypto Sell-Off While bitcoin futures
prices have dropped below the asset’s trading price, Ethereum
futures have risen relative to the asset’s market price. Reports
show that between the months of August and September, the price of
Ethereum futures has risen 1% over the actual price of Ethereum.
“This points to much healthier demand for Ethereum versus Bitcoin
by institutional investors,” said the analysts. Featured image from
The Cryptonomist, chart from TradingView.com
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