http://www.coindesk.com/institutional-investors-ether-rally%3famp=1More Institutional Investors Are Buying Ether, Seeing It as a Store of ValueMore institutional investors are seeing ether as a store of value, according to Coinbase’s annual review for 2020. The crypto exchange noticed “a growing number” of its institutional clients have taken positions in ether, the native currency of the Ethereum network, for its strong returns. These clients predominantly bought bitcoin in 2020.
“The case for owning ethereum [ether] we hear most frequently from our clients is a combination of, first, its evolving potential as a store of value and, second, its status as a digital commodity that is required to power transactions on its network,” according to the report.
As industry leaders including Coinbase and Gemini continue to take a bullish view of ether, an increasing number of large investors are also exploring the sub-sector called decentralized finance (DeFi), according to analysts and traders.
Adding to the thesis that institutional investors are growing more interested in ether, the CME announced in December it will launch ether futures contracts next month. An ether-based derivatives products on one of the world’s largest regulated futures exchanges catering to an institutional crowd will give customers an opportunity to hedge their spot positions, reduce their overall risk of investing in ether and provide a venue for them to take speculative positions.