Big investors shifting from Bitcoin to Ether futures: JPMorgan analysts

Big investors shifting from Bitcoin to Ether futures: JPMorgan analysts


JP Morgan, America’s multinational investment bank, has recently revealed that institutional investors are now starting to move away from Bitcoin futures to Ether derivatives.


 In an official note on September 22, the bank’s analysts said that all of the Bitcoin futures on the Chicago Mercantile Exchange (CME) have traded at discounts compared to spot BTC prices in the month of September.


As a result, Ethereum-based products have grown popular because investors made have made the switch to the world’s second-largest crypto asset. 


 JP Morgan’s analysts have said there had been a “strong divergence in demand”, stressing that this is a “setback” for Bitcoin and, in fact, represents the weak demand from institutional investors that tend to use regulated CME futures contracts for gaining exposure to Bitcoin.



When the demand is high, Bitcoin futures usually trade at premiums over spot markets due to high BTC storage costs and entice yields for passive crypto investments.


As per CME data, the 21-day average ETH futures premium has risen to 1 per cent over Ether prices on the spot markets. Accordingly, this points to a “ healthier demand for Ethereum vs Bitcoin by institutional investors,” commented the JP Morgan analysts.


According to data from Skew Analytics, Binance is the industry leader for BTC futures volumes having $20 billion traded in the past 24 hours. OKEx is second with $5.36 billion, and CME has only $2.34 billion traded in the last 24 hours in comparison. Binance also dominates for ETH futures having a daily volume of $9.7 billion.


Ironic as it sounds, JP Morgan’s take on crypto futures had emerged on the same day a motion had been filed in Manhattan’s federal court that ordered the premier investment bank to pay $16 million to Treasury futures investors on charges of creating false demand, or “spoofing”. 


 As per Law360, the move comes after the bank’s $920 million criminal settlement with the US Department of Justice in September 2020 for charges of manipulating commodities futures markets.


Two trust funds on BTC and Ethereum have been released by California’s Cambrian Asset Management. The two institutional investment products have been created for offering exposure to the underlying assets.

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