JPMorgan analysts say a lot of money is throwing Bitcoin for Ethereum

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Ethereum has recently made its way onto the radar of institutional investors. More money has poured into the digital asset in recent months following the success of Decentralized Finance (DeFi). With so much money coming from institutional investors, the value of ETH has grown significantly over the past two months. The data shows that institutional investors are entering Ethereum as early as possible, eliminating the possibility of missing the bus when cryptocurrency eventually becomes a major part of mainstream financial markets.

Ethereum being more valuable than the top cryptocurrency bitcoin is a hotly debated topic in the crypto space. Although they are the most valuable, analysts at JPMorgan have argued that institutional investors are moving away from bitcoin and taking more positions in ETH. As the crashes rocked the market, the value of bitcoin has taken many hits. And with these came a relaxation of the very confident price predictions made for the asset.

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Institutional investors are turning away from Bitcoin futures

Restrictions on buying real cryptocurrencies have left institutional investors to trade crypto futures. Bitcoin futures have garnered a lot of interest from big investors who don’t have to invest in cryptocurrencies directly. But recent data shows that these large investors are starting to move away from Bitcoin futures to invest in Ethereum futures.

ETH recovers more than $ 3,000 | Source: ETHUSD on TradingView.com

JPMorgan analysts have released a note containing their findings for the cryptocurrency market. According to analysts, the decrease in interest in bitcoin futures has not been good news for the digital asset. Explaining further, analysts said: This is a setback for bitcoin and a reflection of weak demand from institutional investors who tend to use regulated CME futures for bitcoin exposure.

Bitcoin futures have consistently traded below the actual market price of the cryptocurrency on the Chicago Mercantile Exchange, as institutional investors pull out and start betting on Ethereum.

Ethereum currently overvalued

Last week, a JPMorgan analyst pointed out that at its current price, Ethereum is currently overvalued. The analyst valued digital assets at $ 1,500, about 55% below its current trading range. But it seems that despite this fair low valuation, ETH still beats the most important bitcoin for the large sums of money entering the market. Ethereum has also held up better in the face of recent stock market crashes.

Related reading | Billionaire Mike Novogratz Says He’s Not Nervous About Selling Crypto

As bitcoin futures prices fell below the trading price of assets, Ethereum futures contracts rose relative to the market price of assets. Reports show that between August and September, the price of Ethereum futures contracts rose 1% from the actual price of Ethereum. This indicates a much healthier demand for Ethereum compared to Bitcoin by institutional investors, analysts said.

Featured Image From The Cryptonomist, Chart By TradingView.com

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