Coinbase’s 2020 annual report revealed the majority of institutional investors are now shifting interest to ether, considering the second largest asset after Bitcoin (BTC) as a value reserve.
The average Bitcoin investor in 2020 before ‘moving’ to ether, the main currency of the Ethereum network after being seen re-strengthening.
The report states, "Clients describe Ethereum (ether) as, first, the potential to grow as a storage of value and, second, as a digital commodity needed to strengthen transactions on its network."
At the same time, analysts admit there has also been an increase in the number of investors who also pay attention to centralized finance (DeFi) when focusing on ether although there is no denying that the average is uncomfortable with its risks.
Another thing that attracted investors to switch to ether was CME in December announcing the launch of ether futures next month, February.
It is an opportunity for institutional investors to protect their positions, reduce the overall risk of investing in ether and provide space for them to take speculative positions.
It is also possible that the CME ether futures news has caused the Ethereum Grayscale Fund to depreciate to its base value.
The acquisition of Ethereum 2.0 shares also plays a factor in the transition of investors to ether due to the rewards received in the annual interest on their holdings.
CrossTower chief investment officer Chad Steinglass described the ether surge this time as more organic, and driven from within the crypto industry than the bitcoin movement a few months ago. In fact, most crypto investors in particular have shifted allocations from bitcoin to ether following the relatively modest movement of bitcoin in recent times.
