Ethereum Futures More Popular Among Major Investors Than Bitcoin: JP Morgan
Investors can get stuck into futures trading of most major cryptocurrencies, but the biggest assets by market cap—Bitcoin and Ethereum—are the most popular contracts to trade. This is seen as a good way for old-school investors to get involved in the crypto market without having to deal with buying and storing actual cryptocurrency, which can still be confusing and burdensome for more traditional investors.
This pivot in interest is a “setback for Bitcoin,” according to a Thursday Business Insider report citing a note from the bank. Bitcoin futures on the Chicago Mercantile Exchange’s (CME) traded below the price of Bitcoin this month, the report noted.
Bitcoin futures refer to when investors place bets and trade contracts that deal with the future price of the cryptocurrency and not the actual asset itself. It’s a huge market, and there is more interest in it than spot trading (where investors buy and sell Bitcoin the cryptocurrency) in terms of cash invested. For example, 24-hour volume at Binance, the world’s biggest crypto exchange, for spot trading is currently $23 billion. For futures trading, right now it’s $65 billion.
Investors can get stuck into futures trading of most major cryptocurrencies, but the biggest assets by market cap—Bitcoin and Ethereum—are the most popular contracts to trade. This is seen as a good way for old-school investors to get involved in the crypto market without having to deal with buying and storing actual cryptocurrency, which can still be confusing and burdensome for more traditional investors.
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