After bitcoin (BTC), it might be ether (ETH) to witness interest from institutional investors.
Ether to Follow Bitcoin’s Lead?
Bitcoin’s monumental rise witnessed throughout the entirety of 2020 has been nothing short of exemplary. From crashing to almost $3,000 at the onset of the coronavirus pandemic earlier this year to smashing through $28k a few hours back, bitcoin has come a long way.
A large part of bitcoin’s rise could be attributed to increased money inflow from institutional investors. Now, Ryan Watkins, analyst, Messari, believes that in 2021, institutions will come after ether which could lead to a dramatic rise in price for ETH.
Watkins dubbed the CME Group’s recent announcement that stated it would launch ether (ETH) futures on February 8, 2021, as the “writing on the wall” that institutions will commence buying the second-largest cryptocurrency by market cap next year.
Earlier today, ether’s price skyrocketed to over $700 before tumbling down to the high 600s.
Notably, it was the first time since January 2018 that ether traded above $700.
Just five hours before trading at $700, ether’s price was as low as $624.76 in the 11:00 UTC hour. At the time of writing, the total market cap of ether is approximately $80 billion.
A Bright 2021 for Ethereum?
2021 could be for ETH what 2020 was for BTC.
Firstly, the anticipation for the full realization of Ethereum 2.0’s capabilities is immense.
As recently reported by BTCManager, the Ethereum 2.0 smart deposit contract has exceeded over $1 billion in total amount staked. Notably, only 524,000 ETH was actually required as the minimum threshold to initiate Phase 0 of Ethereum 2.0.
Further, several exchanges and crypto custody services around the world, including the likes of Coinbase are already preparing to provide the necessary tech infrastructure to ETH holders to stake ether.
In terms of regulations, ether continues to be one of the favorites of regulators the world over. BTCManager reported on December 11 that the world’s first Ethereum-based ETF had gone-live on the Toronto Stock Exchange.
In similar news, acclaimed economist, Raoul Pal recently said that ether holds the potential to surpass BTC’s market cap within the next ten years.