According to data from actions in the only ETF like tracker on Nasdaq Stockholm, institutional clients usually buying through banks are preferring ethereum over bitcoin.
Coinshare runs a number of bitcoin and ethereum trackers, announcing recently they now have over a billion dollars in assets under management.
They are one of the very few ways you can buy the two cryptos from your stock portfolio, which could include pensions.
Offers are, however, increasing for ethereum. Canada’s biggest pension fund recently launched Ether Capital, a stock traded company that focuses on buying eth directly with 90% of its fundings as well as investing with the rest in eth only start-ups.
Ether Capital has now bought some 30,000 eth in the past two weeks, with their stock in effect being a somewhat fairly direct way of buying eth without holding the underlying asset.
The infrastructure for institutional investors does however remain quite sporadic, but interestingly, their clients are more interested in buying and holding eth or btc, rather than trading it in futures or likewise short term contracts.
“A number of clients wanted to hold it as a valuable commodity, similar to gold, given the limited quantity of Bitcoin that can ever be ‘mined,'” NY Times recently reported in the context of Goldman Sachs opening a trading desk.
The main reason is diversification. Cryptos are an uncorrelated unique class with its own factors affecting its price, so leading to increased demand for the assets.
Coinbase recently begun serving institutional investors by facilitating Over the Counter block trades, thus allowing for big orders without directly affecting the price.
Regulatory barriers, however, means much is moving far too slow, with the Securities and Exchanges Commission denying the market an ETF.
They are now seemingly thinking of allowing an ETF for bitcoin, but based on futures which are not really tied to the asset as they are cash settled. Something which might not satisfy many investors who may want the asset itself or a right to it.
Interestingly, you would have thought London would have taken a competitive advantage by launching an eth or bitcoin bound ETF on FTSE, but that has not happened for unclear reasons.
So leaving Stockholm as the only place to go for now, and according to the Bloomberg data shared above, those that have gone there are now preferring eth over bitcoin.