Copy link
Increase text size
Decrease text size
Link copied

Ether (ETH) institutional demand to rise in 2021, says analyst

An analyst believes that demand for Ether (ETH) could pick up next year as institutional investors start to invest in the crypto-asset.

Image by Peter Patel from Pixabay

Tue, 29 Dec 2020, 07:36 am UTC

Bitcoin (BTC) has been getting a lot of press lately as the crypto soared past its 2017 all-time high until it set a new record when it traded at $28,378 on Sunday, December 27, 2020. Ether (ETH), the world’s second-largest cryptocurrency by market cap, might not be as prominent as BTC but the token has likewise posted massive gains and has even breached $700.

Strong demand for Ether pushed its price to as high as $745 as of 3:54:13 AM on December 29 based on data from Coinmarketcap.com. While the price has since slid down lower, the crypto is still trading above $700 as of press time suggesting that traders are still optimistic about the digital currency’s short-term potential.

The two major factors for the ETH’s surge are the upcoming CME Ethereum futures listing in January 2021 and the strong technical market structure, according to Cointelegraph. But what’s more interesting is that an analyst believes that Ethereum still has room to grow next year thanks to increasing institutional demand.

Ryan Watkins, an analyst at crypto data provider Messari, believes that institutional demand for Ether will likely pick up next year, according to Coindesk. He said that the fact that CME Group is launching an ETH-based product is an indicator that there’s a strong demand for the cryptocurrency.

“CME futures is the writing on the wall,” Watkins tweeted. “They wouldn’t launch an $ETH product if there wasn’t any demand for it.”

While 2020 is known as the year that institutions started buying BTC, 2021 could be ETH’s turn. “In 2021 we begin seeing institutions buy $ETH,” Watkins added. “Once you accept that Bitcoin may be valuable, it opens your mind to the possibility that other crypto-assets may also be valuable. It’s a much easier jump from $BTC to $ETH from there.”

Bitcoin’s (BTC) recent rally has been attributed to the entry of institutional investors how bought the crypto as a hedge against the expected inflation caused by governments’ money printing activities in response to the economic effects of the coronavirus pandemic.

JPMorgan strategists predict that institutional demand for Bitcoin (BTC) could reach $600 billion in the coming years. At the moment, there are still no projections for ETH demand once companies start investing in the crypto-asset.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Moses
  • 2021.01.02 20:17:05
I am a crypto currency trader and i make over 200% daily trading all day and night and also by passing even when market is down and others are resting , If you are interested, I can teach you how to trade and also help you achieve your goal in life with crypto i can turn 4 btc into $340,000.00 in less than four weeks, now that bitcoin has high prices...please note that crypto currency trading is bitcoin unlike binary and Forex,bitcoin is traded for altcoins , bitcoin can also be traded for Ethereum, Litecoin, United States Dollar, Ripple, Euro, IOTA, and other stocks you need to put to trading on a daily basis with a very correct strategy and a target of profit as you get into the trading market with your capital. Also you can reach to me if you are new to bitcoin and to give you more info and guideline on how to invest smartly, this is opportunity life time knocking on your door ???? inbox me for more info....contact me on WhatsApp +1(206)-742-5358
  • 0
  • ·
  • 0
More
  • Bitcoin (BTC) $36,381.50 (+4.06%)
  • Ethereum (ETH) $1,239.05 (+2.99%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Cardano (ADA) $0.375900 (+2.50%)
  • Litecoin (LTC) $150.08 (+7.05%)
  • Bitcoin (BTC) $36,381.50 (+4.06%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft