This inflowing of big money has also been significantly having a positive impact on the price of Ethereum (ETH) over the past couple of months.

Read Also: Largest Ethereum Mining Pool in the World to Stop Serving Miners in China

Data from different crypto analytics platforms show that institutional investors are trying to join the Ethereum bandwagon before the cryptocurrency becomes an important part of traditional finance markets.

Ethereum (ETH) being more valuable than the flagship cryptocurrency has been a top topic for debate in the crypto ecosystem.

Despite the fact that Bitcoin (BTC) is the most popular and valuable crypto asset, JPMorgan analyst is showing that institutional investors are taking more positions in Ethereum rather than Bitcoin.

In recent months, Bitcoin has experienced multiple price crashes, which is, in turn, dissuading institutional investors and making its bullish trend less predictable.

Read Also: Analyst Who Accurately Predicted Current Pullback Says Ethereum Has Bottomed and Ready for New All-Time Highs

Big-money Investors Are Shying Away From Bitcoin Futures

As written by a JPMorgan analyst and reported by Business Insider, Big-money investors have started to shy away from the Bitcoin Futures trade and moving to Ethereum Futures instead, as interest in the largest cryptocurrency drops.

According to the report, in September, Bitcoin Futures on the Chicago Mercantile Exchange traded below the price of an actual Bitcoin.

JPMorgan analyst 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”

Under healthy demand, futures usually trade at a premium to actual Bitcoin. According to previous JPMorgan research, this occurs because high Bitcoin storage costs and the juicy yields available for passive crypto investing push up futures prices.

Read Also: Coin Bureau Host: Cardano To Trigger Largest Explosion in Crypto innovation Since Ethereum Launch in 2015

However, for now, according to the note, the reverse is the case for Bitcoin. The dynamic has made the current weakness in futures bearish for Bitcoin.

On the other hand, institutional investors have started to pivot to Ethereum steadily since August. According to CME data cited in the note by JPMorgan, over actual ETH prices, the 21-day average Ethereum futures premium surged to 1%, indicating a healthier demand for Ethereum by institutional investors compared to Bitcoin.

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The post Big-Money Investors Are Dumping Bitcoin (BTC) For Ethereum (ETH) –JPMorgan Analyst appeared first on Times Tabloid.

Two people who are close to the matter confirmed the new development to CoinDesk on condition of anonymity.

According to CoinDesk while relaying the account of one of the sources, the bank has been conservative in its approach to the crypto sector just like most institutions, but due to a large amount of margin required to trade the futures, it’s now giving some clients the access to the crypto market.

Read Also: Crypto Michael Outlines Critical Levels for Bitcoin (BTC), Ethereum (ETH), VeChain (VET)

Based on the account of the source according to the report, some clients are setting up to trade Bitcoin Futures, which are cash-settled, and one of the two may have gone live.

Investment Banks Are Growing Interest in Crypto Products

Investment banks across the world are now vastly experiencing a growing interest in rendering crypto services. A number of the banks are reportedly enabling their clients to invest in cryptocurrency products.

In March 2021, Goldman Sachs, an American multinational investment bank and financial services company headquartered in New York City, confirmed plans to relaunch its crypto trading desk following a 3-year hiatus. In May, the bank commenced the buying and selling of Bitcoin Futures in block trades through Chicago Mercantile Exchange (CME) Group, using Cumberland DRW as its trading partner.

According to one of the sources, as reported by CoinDesk, Bank of America will also be using CME futures. However, the investment bank has declined to comment in relation to the new development.

Read Also: Goldman Sachs: Ethereum Has the Potential to Overthrow Bitcoin as a Digital Store of Value

So far, the report has helped Bitcoin (BTC) in the market to make a slight recovery. Moments after the report went live, the price of the flagship cryptocurrency spiked by $1,000 from its intraday low of $31,000 to $32,000.

At the time of filing this report, BTC is trading at $32,152.23, with a relatively 2% price uptrend in the last 24 hours.

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The post Bank of America Approves Bitcoin Futures, BTC Price Spikes appeared first on Times Tabloid.