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JPMorgan Claims Institutions Are Ditching Bitcoin for Ether

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Thu, 09/23/2021 - 07:17
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Alex Dovbnya
Institutional demand is much healthier for Ether compared to Bitcoin, says JPMorgan
JPMorgan Claims Institutions Are Ditching Bitcoin for Ether
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In a recent note, JPMorgan analysts claim that Ethereum is seeing “much healthier” institutional demand compared to archrival Bitcoin.     

The American megabank points to the fact that Bitcoin futures offered by Chicago-based giant CME Group have returned to backwardation.

There has been a steady decline in the number of Bitcoin futures contracts traded on CME since August.

On the other hand, Ether has seen a sharp increase in open interest over the same period of time.

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Ether
Image by jpmorgan.com

Still, JPMorgan’s Nikolaos Panigirtzoglou recently told Business Insider that the second-largest cryptocurrency was grossly overvalued:

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.

Panigirtzoglou believes that the growing competition in the smart contract sector threatens Ethereum’s dominance in spite of its first-mover advantage.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.