The American multinational investment bank JPMorgan said that institutional investors are starting to move away from Bitcoin futures products, turning to Ether derivatives.
In a note to investors on September 22, Wall Street bank analysts reported that the Chicago Mercantile Exchange (CME) Bitcoin futures were trading at a discount compared to BTC spot prices in September.
As a result, Ethereum-based products have gained popularity as investors transition to the second largest crypto asset in the world. Analysts noted a “strong divergence in demand” before adding:
“A reflection of the decline in the price of Bitcoin and weak demand from institutional investors who tend to use regulated CME futures contracts for Bitcoin adoption.”
When demand is high, BTC futures often trade higher than spot markets due to BTC’s high storage costs and attractive returns from passive investment in cryptocurrencies.
According to CME data, the 21-day average ETH futures premium increased to 1 percent relative to Ether prices in the spot markets. “This points to a healthier demand for Bitcoin versus Ethereum from institutional investors,” said JPM analysts.
According to Skew Analytics, Binance is the industry leader in BTC futures volumes, with $ 20 billion traded in the last 24 hours. OKEx ranks second with $ 5.36 billion and CME just traded $ 2.34 billion in the last 24 hours. Binance also dominates ETH futures with a daily volume of $ 9.7 billion.
As reported, California-based Cambrian Asset Management has launched two trust funds based on Bitcoin and Ethereum. Institutional investment products will offer access to core assets, but will reduce some of the price volatility, according to Bloomberg.
The company’s flagship cryptocurrency hedge fund, which trades 50 digital assets, gained 76 percent through August this year, while BTC gained 62 percent in the first 8 months of the year.