• Bitcoin’s large wallet investors are realizing profits.
  • One address sold $81.4 million worth of Bitcoin at $54,300.
  • Open interest in CME futures contracts in Ethereum exceeds that of Bitcoin with declining interest in BTC. 
  • The approval of a Bitcoin ETF is expected to be followed closely by an Ethereum ETF. 

Institutional interest in DeFi is on the rise. MetaMask Institutional (MMI), the institutional arm of the Ethereum wallet MetaMask, has partnered with institutions to access DeFi protocols. 

Institutions race for access to Web3 applications, prefer Ethereum over Bitcoin

The “flippening” narrative has been around for over a year now. With rising institutional interest in Ethereum, the narrative has become relevant again. 

ConsenSys-owned Ethereum wallet MetaMask has 10 million monthly active users, and it has become the easiest way to access DeFi protocols. The wallet has now partnered with BitGo, Qredo and Cactus Custody, three institutional asset management firms. 

The wallet first launched its institutional offering in December 2020. Since then, there has been a spike in interest in Ethereum and DeFi protocols from hedge fund managers and firms. 

Bitcoin dominance is expected to rise after the launch of a Bitcoin ETF approval; however, proponents expect the spike to be temporary. Once an Ethereum ETF is launched, institutions may flock to the Web3 gateway.

The open interest in CME Ethereum futures, considered indicative of institutional investors’ interest in a cryptocurrency, is rising. 

Layer-1 scaling solutions are becoming the global standard, according to cryptocurrency experts. On-chain activity, daily transaction volume and unique users are rising, as highly programmable money powers applications on Web3. 

Cryptocurrency analyst and veteran entrepreneur @tokenstate recently commented on institutional interest in Ethereum. 

Alongside the rise in interest in Ethereum, large wallet investors are reducing their exposure to Bitcoin. Bitcoin’s third-largest holder sold 1,500 BTC at $54,300. The large wallet investor has reduced his exposure to BTC since the asset’s price crossed $50,000. 

This implies dropping interest in Bitcoin and capital rotation to Ethereum and Web3 ecosystem products is real. 

FXStreet analysts have evaluated the Ethereum price trend and predicted that the altcoin is heading toward a strong bullish breakout. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Cardano price could trap impatient investors before triggering an explosive move to $0.505

Cardano price could trap impatient investors before triggering an explosive move to $0.505

Cardano price shows a consolidation below a stable support level and has yet to reveal a directional bias. The ongoing range tightening will likely resolve as the US markets head to a fresh start this week.

More Cardano news

LUNA Classic price hints at a 25% crash as Do Kwon under Red Notice from Interpol

LUNA Classic price hints at a 25% crash as Do Kwon under Red Notice from Interpol

LUNA Classic price reveals a bearish outlook that could unfold over the course of this week. A minor run-up seems plausible, but it is just a move to squeeze the bulls. Therefore, market participants should be ready for a quick reversal. 

More Luna Classic news

Ethereum Price Prediction: Assessing the possibility of a post-Merge rally

Ethereum Price Prediction: Assessing the possibility of a post-Merge rally

Ethereum price trades at $1,323 on Sunday, several days after sliding to $1,200. It was a surprise that the largest smart contracts token would give up most of its gains during and after the much-publicized Merge. On-chain data shows a significant reduction in the Ethereum Supply.

More Ethereum news

Why Chainlink price could lose momentum at $8.00

Why Chainlink price could lose momentum at $8.00

Chainlink price is among the few crypto assets in the green on Sunday. The smart contacts’ price feed oracle token defied the bear market this week to post 23.7% gains. As discussed earlier in the week, the V-shaped pattern matured at LINK brushed shoulders with $8.00.

More ChainLink news

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin price takes the first step to recovery but needs solid confirmation that will arrive after a flip of the $19,539 level into a support floor. After a successful flip, investors could expect a move up to an intermediate hurdle at $20,737.

Read full analysis

BTC

ETH

XRP