Following a big decline in September amid a market-wide upside correction that saw cryptocurrency markets in general plummet, Ethereum’s native token, Ether (ETH), has made a comeback.
A swarm of difficulties emanating from China caused ETH prices to plummet. After a turbulence in China’s heavily indebted property market spurred a sell-off across global stock markets and a new crypto crackdown by regulators in the country, traders dumped crypto assets en masse.
Institutional interest in Ethereum (ETH) and other bitcoin alternatives continues to thrive, with bitcoin investment products’ total assets under management declining 7.8% to $35.1 billion in September, the lowest share this year.
Last month, Ethereum-based products had the biggest market share of assets under management, according to the September edition of CryptoCompare’s Digital Asset Management Review. Investors appear to be attempting to diversify their exposure in the bitcoin market, based on the developments.
Grayscale’s Ethereum Trust (ETHE) was the most actively traded digital asset last month, with an average daily trading volume of $250 million, up 29% from August. It dethroned the Grayscale Bitcoin Trust for the first time ever (GBTC).
JPMorgan Chase’s bullish report boosted ether prices as well. Institutional investors have begun to increase their exposure to Ether markets, according to the survey.
The growing enthusiasm in the decentralized finance (DeFi) and nonfungible token (NFT) sectors, according to JPMorgan analysts, is the key engine driving investors’ interest in Ether.
They further said that the 21-day average Ethereum Futures premium over spot ETH prices had risen to 1%, citing statistics from the Chicago Mercantile Exchange since August.