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.”