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JP Morgan: Institutional Investors Dumping Bitcoin for ETH Derivatives


There is a shift ongoing.

In a note to investors, JPMorgan reveals that institutional players—or the deep-pocketed—are pivoting away from Bitcoin derivatives settling for ETH products. 

Specifically, the bank observes weakness in demand for CME futures contracts as capital is channeled to regulated ETH derivatives.

For this reason, ETH derivatives have been trading at a decent premium above the ETH spot price, signaling demand for these products. 

Ordinarily, whenever demand is high, you'll expect crypto derivatives assets trading at a premium above spot rates to cover storage/custody costs. 

Presently, Ethereum is the most active blockchain platform surpassing Bitcoin, which is primarily a transactional layer. 

With efforts to resolve scaling issues and keep Gas lows, Ethereum is a drawer for investors expecting the platform to play a massive role in the future, anchoring DeFi and other exciting innovations like NFTs. Besides, Ethereum continues to develop. 

Once staking is activated, Ethereum would reward network operators with decent rates of returns in a near risk-free environment. 

Eth2 now locks over $23 billion of ETH, generating over 5 percent APR ahead of their migration to better energy efficiency.


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