Institutional investors were the major force behind the Bitcoinย (BTC) rally in 2021, realizing itsย probability use cases in the future. Institutional investors such as JPMorgan, Ark Invest, MicroStrategy, Tesla,ย Inc., Andreessen Horowitz, and others became supporters of Bitcoinย (BTC) and other digitalย currencies. Nonetheless, institutional investors are more willing to invest in Ethereumย (ETH) than Bitcoinย (BTC) (BTC).
Institutional Investors Prefer Investing in Ethereumย (ETH) Than Bitcoin
The narrative regarding Ethereumย (ETH) overtaking Bitcoinย (BTC) persistsย to boost after Ethereumย (ETH) Merge and Shanghai upgrade. Traders anticipate smaller swings in Ethereumย (ETH) than Bitcoinย (BTC) in the near term.
Ethereumโs 30-day volatility index now trails greaterย than Bitcoinย (BTC) volatility index. Furthermore, the 180-day discovered or historical volatility of Ether relative to Bitcoinย (BTC) hasย dropped immensely since 2020, according to Bloomberg.
This makes institutional investors more interested in investing in Ethereumย (ETH) than Bitcoin as lower volatility typically enables institutional investors to allocate more financialย resources to cryptocurrency. Long-termย investors are more likely to increase exposure to Ethereum.
Bitcoinย (BTC) and Ether implied volatility indexes are accordingย to options pricing. Both indexes dropped from recent peaks in March but the Ethereumย (ETH) index dropped more.
Richard Galvin, co- founder at fund manager Digital Investment Financialย resources Management, argues Ethereumย (ETH) staking yields growing after the Shanghai upgrade in April will further suppress volatility. Nonetheless, the Unitedย States SEC refuses to consider Ethereumย (ETH) as non-security. SEC Chair Gary Gensler believes Ethereumโs proof-of-stake (PoS) transition converted it into a security.
Inย theย meantime, Bitcoinย (BTC) blockchainย tech is impacted by Bitcoinย (BTC) ordinals non-fungible cryptoย tokens and Memeย Coin coins. Furthermore, Bitcoinย (BTC) and Ethereumย (ETH) price correlation dropped to its lowest since 2021.
Ethereumย (ETH) Price Remains Stable As compared to Bitcoin Price
Ethereumย (ETH) price persistsย to trade over $1800 regardlessย of plentyย of macro factors, regulatory issues, and the looming Unitedย States debt ceiling crisis impacting the worldwide market immensely. The price is asย ofย now currentlyย worth $1813, up 1 percent in the last 24 hours.
Bitcoin price remains at danger of sliding below $25,000. The price is down 1 percent in the past 24hrs, with the 24-hour low and high of $26,549 and $26,986, respectively.
