JP Morgan analysts have stated that big investors are dropping Bitcoin futures for Ethereum. Business Insider stated that it may be because the ‘expectations for the world’s largest cryptocurrency soften’.
Bitcoin futures suffered a big hit in the Chicago Mercantile Exchange during this month by trading below the real value of the Bitcoin.
JP Morgan analysts through a note to Business Insider stated that “This is a setback for bitcoin and a reflection of weak demand by institutional investors that tend to use regulated CME futures contracts to gain exposure to bitcoin.”
In a typical scenario, where the market is healthy and there is demand for the futures, it is common to see it trading with a value higher than the value of the Bitcoin in a crypto exchange, but that is not the case this month. The premium value of Bitcoin futures in the past was linked to ‘the juicy yields available for passive crypto investing push up futures prices, according to previous JPMorgan research.
Whether this trend will continue or not for a while, no one can say with a high level of accuracy. If it continues this way, it may negatively affect Bitcoin. On the other hand, the value of Ethereum premium rose by 1%, according to Business Insider.
