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JPMorgan: Institutional investors switched to Ethereum futures

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Ethereum futures presented at the Chicago Mercantile Exchange (CME) are traded at a premium due to the flow of funds from institutional investors from similar instruments based on the first cryptocurrency. JPMorgan analysts reached this conclusion, writes Cointelegraph.

After the correction in September, Bitcoin futures are trading at a discount relative to their spot price. As a rule, the opposite situation is observed. Since the price of a derivative contract takes into account the cost of storing the asset. “According to CME, the 21-day moving average premium on Ethereum futures has increased to 1%. This serious discrepancy in demand reflects the weak interest in bitcoin from institutional investors,” the experts concluded.

Binance is the industry leader in BTC futures volumes, according to Skew Analytics. With $20 billion traded in the last 24 hours. OKEx is second with $5.36 billion, while CME has only $2.34 billion traded in the last 24 hours. Binance is also the market leader in ETH futures, with a daily volume of $9.7 billion.

The second largest cryptocurrency by capitalization

Recall that previously in September, JPMorgan strategist Nikolaos Panigirtzoglou, based on network activity indicators, determined the fair price of Ethereum at the level of $1,500.

According to him, the network of the second largest cryptocurrency is less attractive than its price suggests. Thus, Panigirtzoglou noted the growing competition from Solana, Cardano and other blockchains.

“We look at the hashrate and the number of unique addresses to try to understand the value for Ethereum. We’re struggling to go above $1,500,” the JPMorgan strategist added.

Goldman Sachs about Ethereum

In July, analysts at Goldman Sachs bank admitted that Ethereum will surpass Bitcoin as a means of saving. “Currently, Ethereum looks like the cryptocurrency with the highest potential for use. Since the platform for which it is a native digital currency is the most popular for developing smart contract applications,” the investment bank said.

In May, the specialists of this bank recognized cryptocurrencies as an asset class. The bank gathered the opinions of companies related to cryptocurrencies: Grayscale Investments, Galaxy Digital, Chain analysis, Global FX and others, as well as industry critics. The authors of the report noted the uniqueness of many digital assets. According to them, Bitcoin has a high capitalization, XRP is a system for real-time settlements, and Ethereum is a smart contract platform.

A month later they expressed the opposite opinion. Such a turnaround occurred against the background of media reports about the planned launch of futures and options trading based on Ethereum. “We have refrained from repeating the positive and negative hype that surrounds this ecosystem,” the document says.

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