Are Institutional Investors Trading Bitcoin For Ethereum?

Nevertheless, 2021 is the year when the advantage turns out to be on the side of Ethereum. Now, among his associates, there are even the crustiest financial conservatives. But what about Ethereum is so attractive to distrustful classics of banking and payments? Let’s try to look at ETH through their eyes.

The Art of Being Multifunctional

Let’s start with the first advantage of Ethereum over Bitcoin — its versatility. Although Bitcoin is the main character of high-profile headlines, it is the Ethereum blockchain that crypto developers are looking up to, and they have a reason. ETH allows you to build independent applications on its infrastructure, and they can also pay for transactions on its blockchain. That is, if the Bitcoin blockchain stays in the shadow of its offspring, a world-famous coin, then the Ethereum coin and the Ethereum blockchain are moving each other forward, which gives this ecosystem a clear advantage.

Slow but Steady

No doubt that Bitcoin quotes are much more impressive than Ethereum’s humble charts. However, this is why ETH doesn’t seem overvalued to the financial giants. Moreover, Ethereum’s price is still growing quite impressively — over the past 12 months, despite the May collapse, it grew by 1000% against 300% of Bitcoin. And let’s not forget that Ethereum has even outperformed both J. P. Morgan and Visa in terms of market capitalization lately.

Plenty of Room to Grow

Another factor driving Ethereum is its upgrades. So, the recent London hard fork was a new step towards fixing fees for transfers, making transactions faster and easier, and changing the whole concept of traditional mining. Ethereum’s limit is not close because it is fueled by subsidiary DeFi projects increasing profits and asset reserves. Thus, the constant new efforts of the creators of Ethereum and their supporters to make blockchain and coin safer, more convenient, and dynamic are warming up the interest of institutional players.

The Gold Rush of the Rich

Last but not least, there are lots of breaking announcements from financial legends. Now, among those who appreciate the benefits of Ethereum are Goldman Sachs, BlackRock, VanEck, Galaxy Digital, and others. Moreover, those who previously considered even the thought of crypto unacceptable began to reach out to digital assets. I mean, Jamie Dimon, Executive Director of J. P. Morgan, who once promised to fire traders recommending digital assets to clients, is now changing his mind. Yes, these applications are in limbo (due to the sidelong views of the SEC), but the very fact of registration of crypto-oriented products shows that digital assets have finally opened up to giants from a new side.

So, even if today Bitcoin takes off on the hype, tomorrow everything can change. In any case, it appears to me that Ethereum has fundamental advantages that will allow it in the future to prevail over Bitcoin with its sluggishness and noise.

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