JPMorgan: Institutions Pivot to Ethereum Futures

The CME Ethereum futures trade at a premium due to a flow of funds from institutional investors out of BTC-based instruments. JPMorgan analysts reached that conclusion, Cointelegraph reports.

Bitcoin futures, after a September correction, trade at a discount to their spot price. Typically, the opposite is observed, as the cost of holding the asset is reflected in the price of the derivative contract.

“According to CME, the 21-day moving-average premium on Ethereum futures has risen to 1%. This sizable mismatch in demand reflects weak interest in Bitcoin from institutional investors.”, the analysts concluded.

Earlier, JPMorgan strategist Nikolaos Panigirtzoglou, based on network-activity indicators determined the fair price of Ethereum at around $1,500.

In July, Goldman Sachs analysts acknowledged that the second-largest cryptocurrency could surpass Bitcoin as a store of value.

In May, analysts at the bank recognized cryptocurrencies as an asset class, and a month later expressed the opposite view.

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