According to JPMorgan researchers, institutional investors are more interested in Ethereum futures than Bitcoin futures. BTC futures on the Chicago Mercantile Exchange traded for less than the spot price of one bitcoin, according to Business Insider.
Institutional investors, on the other hand, have been swayed towards ETH since August. According to JP Morgan, the 21-day average ETH futures premium has risen to 1% above real ETH prices, using CME data.
Ethereum Purchases Outpacing Bitcoin?
As of this writing, BTC has lost 7.13 percent of its value and ETH has lost 13.04 percent of its value. This is despite the fact that big investors have been more interested in Ethereum futures over the course of the week. The “London” upgrade of Ethereum last month has been a major reason for institutional investors turning into Ethereum futures lately.
After the update is complete, it was predicted that ETH will burn through $5 billion in a year, attracting institutional investors and bulls alike. ETH has may have a good amount of potential value, according to these investors. Because of the ongoing uncertainty around BTC, it’s possible that more investors may switch to other cryptocurrencies or simply diversify their portfolios.
What is Ethereum 2.0?
Ethereum 2.0, often known as Eth2 or simply ‘Serenity’, is a set of enhancements to the Ethereum network that will make it more scalable, secure, and long-lasting. Ethereum’s network, and the whole Blockchain ecosystem, will be transformed as a result of these improvements.
According to Ethereum’s creator Vitalik Buterin, if Eth2 is deployed, network speeds would increase from the current average of about 15 transactions per second to as much as 100,000 TPS.
As a bonus, the improvements will lower Ethereum’s carbon footprint while simultaneously enhancing network security.
A Switch to Green Energy Proof of Stake
Ether will switch from a Proof-of-Work consensus method to one that uses Proof of Stake. A huge number of computer nodes compete to solve difficult mathematical problems in order to verify each transaction on the network, making PoW a costly, energy-intensive, and time-consuming solution.
When it comes to processing transactions, PoS is considerably faster and cheaper since it employs an algorithm to verify blocks without the need of energy-intensive hardware usage.
The Merge is the next step in the Ethereum network’s evolution, and it will see the network formally adopt the Beacon Chain consensus mechanism. Staking on the whole network will be enabled and energy-intensive mining will be phased out by the end of 2021 (no specific date has been set).