Do you guys think that institutions are getting into ETH more than Bitcoin? How do you think this will affect the future prices of both cryptocurrencies?
Is institutional interest in ETH greater than in Bitcoin?
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paul.ninjaFull Member
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#2Apr 21, 2018, 03:22 AM
"Institutional" splits in two sides. If you mean big money parking into an asset, BTC's still the champion, as those spot ETFs turned on the vacuum and treasurers finally got a button to push. If you mean builders and pilots, ETH's where the suits play: tokenized treasuries, DeFi rails, L2 experiments, etc. The ETH ETFs exist now too, just launched smaller and without staking in the wrapper yet, so the yield pitch isn't there.
For price, BTC is mostly about ETF net flows and the "digital reserve" story. ETH's a mix of flows plus on-chain demand, if staking ever gets allowed in the big ETFs, that's less float and a cleaner yield narrative. Different beasts, different pipes feeding them. Watch ETF flows for BTC; watch on-chain activity and L2 usage for ETH.
No, BTC is still king, meaning it's the primary alternative for institutional investors when going into crypto market. ETH may be the first option only for speculative investors, although there is a difference between them and institutional investors.
The main attractive of ETH is the fact developers can create their own tokens using its blockchain, and the reason why it's top 2 in crypto market for so long already. However, it's undeniable Bitcoin is more reliable and solid than every other cryptocurrencies available. Bitcoin is an asset acquired by investors thinking on long term safety for their money.
Hmmm, a few days ago, my friend said the same thing, he said that Ethereum (ETH) has higher level of institutional adoption than Bitcoin (BTC). But I don't believe it & TBH, I haven't checked the data. In my personal opinion, Bitcoin (BTC) adoption will never be surpassed by any altcoin, whether at the retail or institutional level, one of the reasons (maybe) is because Ethereum (ETH) supply isn't truly limited.
I don't think that any institution will adopt Etherum without adopting bitcoin that's impossible. This is because institutions are aware that bitcoin is more profitable than Etherum so therefore, they wouldn't gamble with their money and buy only Etherum. The reason why the supplement Etherum with their bitcoin purchase is because Etherum has been in the market so long after bitcoin.
ETH Hs really got a lot of institutional adoption but yet not in any way comparable to the institutional adoption of bitcoin. Being it the second best coin after bitcoin makes it a choice of investments for this big institutions and for those of them that dont value decentralization and value centralization more, youll often see them investing in ETH in large amounts as much as they do to bitcoin also. The future impact on price of both coins will really be advantageous to the both of them, because the demand for them will never make them lose value overtime.
SilentGuruSenior Member
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#7Apr 21, 2018, 06:55 PM
Depends on what you mean by adoption, if it's for diversification of portfolio and reserve, bitcoin win by significant margin. If it's product deployment, for sure the smart contract capability helps a lot in this regard.
I've seen some institutional deploying product here and there as well as bringing RWA but that's about it.
I rarely seen them buying ETH for reserve though, they prefer bitcoin for this, maybe because it's more secure.
silentchainHero Member
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#8Apr 22, 2018, 12:31 AM
There were reports that institutional adoption is higher in ETH as compare to Bitcoin. However, I can't really figure it out one ETH can be bigger when every country wants Bitcoin to be their national reserve or am I missing something here? Or this is just a fake news from ETH itself to create some hype of them as obviously, it's run as below expectations. While Bitcoin has been reaching new all time high and the last one was just last month.
So for me, I will take this report with a grain of salt. And even if there are real data and it shows that ETH adoption is big and greater than Bitcoin, but still you just have to look at the status of ETH today as compare to Bitcoin. Or just compare ETH to any other alts like BNB or SOL and tell us if ETH is doing good or not in this cycle.
For institutional investors, Bitcoin is the first priority. The traditional investors are more conservative and Bitcoin is a name almost everyone knows and trust with. That's why many new and old finance managers as well as companies are buying bitcoin as an investment.
While Ethereum has more demand on utility. Frozen by many L2 solutions to issue WETH. This is also a type of investment where the circulating supply of Ethereum is limited as the original token is taken as a collateral to issue a similarly price token in a different network. This might make Ethereum more scarce than Bitcon in reality and might make its price increase at a higher rate. It has potential but Bitcoin is much safer way to success.
On the bases of investment, Bitcoin have enjoyed more institutional preference to Ethereum because we have seen how many big capitals, governments and indeed many institutions have embraced Bitcoin and are investing heavily on it following the approval of Bitcoin ETF. We have not seen such inflow into Ethereum which makes it safe to say that Bitcoin have enjoyed more institutional adoption that Ethereum.
However, on the basis of use case, Ethereum smart contract have proven to be an amazing innovation that have and will unlock alot of innovation that will make it adopted in various fields of life.
wallet2018Member
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#11Apr 24, 2018, 01:01 PM
I don't think Bitcoin has 'adoption' as such. It has buyers, who mostly just store it. Ethereum with it's sc structure can actually have adoption for doing things. Both cryptocurrencies are the champions of the crypto world but with two very different angles, also for enterprises.
SilentGuruSenior Member
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#12Apr 24, 2018, 06:55 PM
That article is just basing the data from total supply held. Each coin have its own market cap, ETH just fraction of bitcoin so from my understanding institutional investor actually holds more BTC than ETH if we judge based on the worth of the reserve in USD.
I get your point about Bitcoin's supply being truly limited, but I'd argue that's not the only factor institutions care about. They want yield, smart contracts, and decentralized apps - things Bitcoin can't do at scale right now.
That said, you're absolutely right that Bitcoin will always be the primary exposure for most institutions. It's the gateway drug into crypto. But saying ETH can't compete is shortsighted. They're competing in different markets. Institutions are increasingly building on Layer 2s and using ETH for DeFi. The narrative is changing.
I think institutional adoption for ETH is indeed catching up fast.
The staking model and its role in DeFi make it more attractive for funds looking for yield,
while Bitcoin still remains the "store of value" choice.
In the long run, both could coexist ETH for utility, BTC for security.
This is because Etherum is very cheap compared to bitcoin. The current price of bitcoin is $100,562 and Etherum is $3655 as I am typing this post. This shows that the price of bitcoin is x27.5 that of Etherum. Meaning $100k+ will give you more than 27 Etherum.
No institution will blindly put a major part of their money into Etherum and put little into bitcoin. Quality is better than quantity. This is where Etherum dev got it wrong from the beginning by making Etherum to have unlimited supply. Don't compare apple with oranges.
Bitcoin leads shitcoin till infinity.
wolf_blockFull Member
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#16Apr 25, 2018, 10:16 AM
I believe Bitcoin still has a clear advantage over Ethereum when comes to institutional adoption, mostly because Bitcoin has a limited supply, while Ethereum does not. So there is an infinite amount of Ethereum which can be created through staking, while Bitcoin is more scarce.
Institutions are the law of supply and demand being more advantageous for Bitcoin than it is for Ethereum, so they go for the coin of Satoshi.
Still, both are blue chip Cryptocurrencies which much demand and Institutions are likely to bet on both of them, instead of focusing on just one.
No, I don't think so. As far as Bitcoin is concerned, and AFAIK, large institutions and organizations have made Bitcoin more of a priority than ETH. I'm not actually saying this because of sentiment or my own bias. I have always followed crypto related news for some time now, and As far as I can remember, I usually get more news of Institutions making Bitcoin purchase than making ETH purchases. A very common news I get is when Microstrategy purchases Bitcoin.
Of course, a few institutions make ETH purchases, but it is no where compared to Bitcoin. And I think I'm beginning to accept that every single thing that happens in the crypto market always relates to Bitcoin, which to me, makes it far more adopted and known when compared to the others.
CyberWhaleSenior Member
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#18Apr 27, 2018, 11:03 AM
Never.
If that were to be the case, ETH would be ahead already because it has plenty of narratives compared to Bitcoin which is only regarded as the best digital store of value. ETH has ultrasound money narrative, stablecoins boom, smart contracts, DeFi and a ton of others but it's only going to be second to become that and fact is even more reflective onf the institutional demand so far.
From time to time, I do keep track of the demand from the Bitcoin and Ethereum ETFs and since the launch from last year, Bitcoin has largely dominated ETH flows by 5-20x.
dave_satoshiSenior Member
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#19Apr 27, 2018, 04:02 PM
The one reason why Bitcoin price went so high even before last halving is because of investments coming from big institutions. Now if big institutes are more interested in Ethereum then Ethereum have surpassed Bitcoin by now. But we still see Bitcoin leading the crypto market in terms of market cap and no other Alt is even close to Bitcoin market cap. Bitcoin is still the king and will remain the king atleast for next 5 to 10 years.
I'm not saying Ethereum (ETH) can't compete, they can with all the potential of their ecosystem. However, surpassing Bitcoin (BTC) adoption, remember I used the word "surpass" is simply not possible. I agree that Bitcoin (BTC) & Ethereum (ETH) have completely different markets, I also agree that Ethereum (ETH) has more gateways of opportunity.
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