Messari analyst Ryan Watkins expressed his opinion that in 2021, institutional investors will start buying Ethereum along with Bitcoin.
Watkins expressed his views on the social network Twitter. He explained that with the adoption of Bitcoin and the realization that the BTC is really a valuable asset, the leaders of organizations will become more open to other cryptocurrencies. For those who have already invested in Bitcoin, it will be much easier to invest in Ethereum, which occupies a second place by market capitalization.
In the second half of 2020, many large firms invested in Bitcoin. In August, MicroStrategy invested $250 million in Bitcoin, after which it acquired BTC for another $175 million. Square, created by the head of Twitter Jack Dorsey, did not stand aside – in October, the company announced the purchase of Bitcoin, with the amount of $50 million.
Watkins also mentioned a recent statement from the Chicago Mercantile Exchange (CME Group) about the launch of ETH futures trading in early February 2021. According to the analyst, CME would not launch such products if there was no demand for them. When CME added Bitcoin futures, institutional investors did not yet have a full understanding of the cryptocurrency and its value.
In 2021 we begin seeing institutions buy $ETH
Once you accept that Bitcoin may be valuable, it opens your mind to the possibility that other cryptoassets may also be valuable.
— Ryan Watkins (@RyanWatkins_) December 27, 2020
Now, many firms see bitcoin as a tool for saving capital in times of economic crisis. Watkins believes that along with involvement in Bitcoin, companies are forming a more loyal attitude towards ETH.
This weekend, Bitcoin reached a record high in the history of its existence – $28,420, but now it has fallen back to $26,200. The Ethereum price also made yearly highs, breaking through the $700 mark. The price of ETH almost coincided with the expectations of analysts who predicted that by the year-end (2020), Ether will be worth $790.