Analysts at financial services giant JPMorgan are reportedly saying Ethereum’s popularity among investors is growing at the expense of Bitcoin futures.
In a research note cited by Business Insider, JPMorgan analysts say large investors who typically use derivatives marketplace Chicago Mercantile Exchange (CME) are shifting away from Bitcoin futures and towards Ethereum futures.
“This is a setback for Bitcoin and a reflection of weak demand by institutional investors that tend to use regulated CME futures contracts to gain exposure to Bitcoin.”
Based on CME data, JPMorgan analysts say the 21-day average Ethereum futures are selling at a 1% premium over the Ethereum spot prices. When there is robust demand, futures typically trade at a premium compared to the spot prices.
“This points to much healthier demand for Ethereum vs. Bitcoin by institutional investors.”
At the time of writing, Bitcoin is trading at around $42,500, while Ethereum is trading at $2,943, according to CoinGecko. Over the past 30 days, Bitcoin has shed 13.1% of its value, while Ethereum has fallen by 9.2%.
In August, U.S. Securities and Exchange Commission filings revealed that JPMorgan was teaming up with crypto titan New York Digital Investment Group (NYDIG) to start a Bitcoin fund. Per the filings, NYDIG’s role is fund issuance, while JPMorgan will refer clients to the crypto titan for a fee.
Earlier in July, JPMorgan announced it would grant all its wealth management clients access to crypto asset funds.
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Andrush