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.
[adinserter block="1"]“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.
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