According to analysts at the US investment bank JP Morgan, ETH, the second largest cryptocurrency, has become more attractive than BTC.
The JP Morgan report reveals that institutional investors prefer ETH
In September, on the Chicago Mercantile Exchange (CME), the world’s largest derivatives market, the price of BTC derivatives is lower than the price of cryptocurrency. According to JP Morgan, this is proof that the demand of institutional investors for BTC is relatively weak.
Futures are a bet on the price of an asset and are largely traded by large institutional investors. This is why the futures market is much larger in volume than the spot market. Specifically for BTC, the daily value traded on the spot market is about $ 23 billion, while on the futures market over $ 65 billion.
On the contrary, ETH futures increased their prices by 1% compared to the price of cryptocurrency on the spot market.
“This points to a much healthier demand for Ethereum compared to BTC from institutional investors.”
The future could be much more promising for ETH than BTC
When Vitalik Buterin launched a revolutionary platform in 2013 that gave birth to a system that supports smart contracts, some observers speculated that ETH would soon overtake the primary cryptocurrency. It remains to be seen whether this prediction is fulfilled, but many analysts believe that the future of ETH could be much more promising than the future of BTC.
It is JP Morgan analysts who said in a report last July that:
“BTC is more of a crypto commodity than a currency and competes with gold as a store of value, while ETH is the backbone of the cryptocurrency economy and therefore acts more as a medium of exchange. The theory is that ETH should overcome BTC in the long run. “
Even another investment giant, Goldman Sachs, recently released a report claiming that ETH has the potential to beat BTC in the coming years. In support of this thesis, the Investment Bank pointed out that from January 2021 to July of the same year, the ETH increased by 1501% compared to 357% for BTC.
According to many analysts, the fact that ETH is not presented as an alternative to traditional currencies such as BTC, but as a platform facilitating blockchain transactions through smart contracts, definitely makes it a more reliable, secure, transparent and scalable project. .
The rivalry between these two major cryptocurrencies will certainly persist for a long time in both traditional and derivative markets.