This statement implies that institutional investors are now seemingly more interested in the second most prominent crypto despite being far from BTC in market capitalization and global market price.
Analysts from the Wall Street bank state that there is now a substantial deviation in demand within the crypto investing space. They then added that this movement, while excellent news for other cryptos, would represent a significant setback for BTC as it mirrors the weakening demand of institutional investors for it.
It is worth noting that when the demand for BTC futures is up, they usually trade at premium prices on spot markets. This is due to its apparent costly BTC storage fees and the compelling potential yields for passive crypto investments. All that is now at risk of going down, as again, investors are showing more engagement on ETH rather than BTC.
According to JPMorgan’s report, investors have been eyeing ETH as early as August this year, leading to its 21-day average ETH futures premium jumping by about 1% higher than the asset’s actual price.
Despite all that, ETH and BTC’s market price are having a hard time, plummeting by 12% and 7% within the past seven days, according to the latest CoinGecko reports.