Institutional investors will start buying Ethereum in 2021, expects Messari analyst Ryan Watkins. He builds his forecast on the announcement of the Chicago Mercantile Exchange Group (CME Group), intending to launch futures for the second largest cryptocurrency on February 8, 2021.
In 2021 we begin seeing institutions buy $ ETH
Once you accept that Bitcoin may be valuable, it opens your mind to the possibility that other cryptoassets may also be valuable.
– Ryan Watkins (@RyanWatkins_) December 27, 2020
“Once you accept that bitcoin can have value, your mind opens up to the possibility that other cryptocurrencies can be valuable as well,” he writes.
The end of the year was marked by the investments of large companies in bitcoin. They are estimated to have raised 1.15 million BTC worth over $ 30 billion at current exchange rates under their management to date. Of these, MicroStrategy is the largest individual holder with 70,470 BTC or $ 1.9 billion. In addition, Grayscale Investments holds 572,644 BTC worth $ 15.35 billion for clients.
According to Watkins, it will be easier for them to switch from investing in bitcoin to Ethereum than, in principle, to decide to purchase cryptocurrencies. He calls the CME’s announcement “an omen,” adding: “They wouldn’t launch an ETH-based product if there was no demand for it. The biggest difference from launching BTC futures at the peak of the previous rally is that institutionalists had not yet come to understand Bitcoin back then. They now understand Bitcoin, accept the possibility of crypto assets having value, and CME is launching futures in the early stages of the next rally. ”
Ethereum’s price topped the $ 700 level this Sunday for the first time since May 2018. Bitcoin renewed its own all-time highs at around $ 28,400. Subsequently, both cryptocurrencies rolled back from the peaks, still remaining in a confident plus over the past day. At the time of publication, Bitcoin is trading at around $ 26,800 and Ethereum at $ 690.
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