Bitcoin Futures Trading Possibly Losing the Interest of Institutional Investors?

7:30 am, Fri, 24 September 21

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According to JPMorgan, the interest of institutional investors might be shifting away from the flagship cryptocurrency. JPMorgan is one of the most influential and popular names in the world and has a fairly competitive research team.

As per reports, JP Morgan has stated that the institutional investors are becoming somewhat less interested in Bitcoin futures and are instead slowly pivoting towards Ethereum. This has certainly brought on plenty of questions and concerns for people who support the flagship crypto asset?

What are the details of this possibility and what does it mean for Bitcoin? Let’s find out.

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Learn More About JP Morgan’s Statement

JP Morgan analysts have stated in a note on Wednesday that the expectations for the largest digital asset are softening. Due to this reason, the major institutional investors are shifting their attention towards Ethereum futures.

According to the analysis, Bitcoin futures have traded below the actual price of the flagship crypto asset in September. Meanwhile, there has been a noticeable divergence in demand by major investors towards ETH since August.

The analysts wrote:

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,”

According to research previously done by JP Morgan, futures trade at a much higher price than the actual Bitcoin. This is considering the circumstances are normal and healthy. This occurs due to high BTC storage costs. There are also good yields for passive investing, which in turn boosts the price of futures. However, the current situation for Bitcoin and futures trading seems somewhat bearish according to the analysts.

On the other hand, Ethereum futures seem to be getting a lot more attention from some of the major institutional investors. This has led many to speculate that the flagship crypto-asset might be overthrown by ETH at some point.

There was a 1% surge over the actual Ethereum prices noted for the 21-day average ETH futures. This showcased a “strong divergence in demand” for ETH by the investors, as per the data cited by JP Morgan.

The analysts also wrote:

This points to much healthier demand for Ethereum vs. Bitcoin by institutional investors,”

Over the last month, there has been a significant drop of 10% in the price of Bitcoin, whereas, Ethereum only saw a price drop of 3% in this period.

While many have been expecting Ethereum to rise and overtake Bitcoin, it has some competition to face as well from cryptocurrencies such as Cardano and Solana.

Should BTC Investors and Traders be Concerned?

The crypto market is quite obviously a very volatile place, which makes it difficult to be certain about anything. However, people who have been long-term investors and traders are familiar with this and understand that the market situations can take a turn at any time.

Several factors influence digital currencies and market trends. Therefore, if you are new to the crypto space and the above-stated news seems worrisome, it is helpful to know that nothing can be said with complete certainty at the moment.

The market can take a turn in favor of the flagship crypto asset at any time as it is the most prominent one. However, how it all plays out is yet to be seen.

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