Etherium has recently entered the radar of institutional investors. More money has flowed into digital assets in recent months following the success of decentralized financing (DFI). With this huge amount of money coming in from institutional investors, the value of ETH has increased significantly in the last few months. The data shows that institutional investors are entering the etherium as soon as possible, eliminating the possibility of “missing the bus” when “cryptocurrency” will eventually become an important part of the traditional cryptocurrency finance market.
Ethereum being more valuable than the top cryptocurrency Bitcoin is a hot topic in the crypto space. Despite being the most valuable, JPMorgan analysts point out that institutional investors are moving away from Bitcoin and taking more positions in ETH. As the crashes have rocked the market, the value of Bitcoin has hit countless times. And with these came the relaxation of highly confident price forecasts made for assets.
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Institutional investors are moving away from Bitcoin futures
Restrictions on buying real cryptocurrencies have left institutional investors trading in crypto futures. Bitcoin futures have seen a lot of interest from large investors who do not have to invest directly in cryptocurrencies. But recent data shows that investors in this big time are starting to come out of Bitcoin futures in favor of investing in Ethereum futures.
ETH recovers above $3,000 | Source: ETHUSD on TradingView.com
JPMorgan analysts have released a note containing their results for the cryptocurrency market. According to analysts, the declining interest in Bitcoin futures is not good news for digital assets. Explaining further, the analysts said, “This is a push for Bitcoin and a reflection of the weak demand of institutional investors who come into contact with Bitcoin using regulated CME futures contracts.”
Bitcoin futures have consistently traded below the actual market value of cryptocurrencies on the Chicago Mercantile Exchange, as institutional investors begin to participate in Ethereum.
Etherium is currently extra valuable
Last week, a JP Morgan analyst noted that at its current price, Ethereum is currently undervalued. Analysts put the value of digital assets at $ 1,500, which is about 55% lower than its current trading range. But it seems that despite this less fair valuation, ETH is still beating the top currency Bitcoin for the big money coming into the market. Ethereum has also held up well in the face of recent market crashes.
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Although the price of Bitcoin futures has fallen below the trading price of the asset, Etherium Futures has risen compared to the market price of the asset. The report shows that between August and September, the price of etherium futures increased by 1% over the actual price of etherium. “This indicates a lot of healthy demand for Ethereum vs. Bitcoin by institutional investors,” analysts said.
Featured image from The Cryptonomist, chart from TradingView.com