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Home » Features » Ethereum continuing to close the gap on Bitcoin – broker research

Serious crypto retail traders are increasingly investing in Ethereum as it takes a bigger share of their trading, unique global research from blockchain-based derivatives trading platform CloseCross shows.

Its study among crypto traders across six major economies who stake at least $5,000 a month found on average 23% of their trading is Ethereum compared with 37% which is concentrated on Bitcoin.

The research by CloseCross , which is regulated under MIFID II rules, found nearly a third (30%) of traders say 50% or more of their trades are in Bitcoin compared with just 10% who report the same proportion of trades for Ethereum.

The study for CloseCross, which enables traders to generate profits through a simplified three clicks process of selecting an asset, found 43% of traders surveyed estimate 25% or less of their trading is in Bitcoin compared with 69% who say the same about Ethereum.

CloseCross CEO, Vaibhav Kadikar, explained: “Some analysts have predicted that Ethereum could eclipse Bitcoin as the major cryptocurrency due to its greater versatility. It is more than a digital currency and can be used to execute smart contracts and store data. More institutional investors are showing interest in Ethereum and there are signs of a shift in the research among traders although clearly there is a long way to go before Ethereum potentially takes over from Bitcoin.”

Traders’ enthusiam for ETH could also be based on its superior price performance: ETH has been the better performer in 2021 than BTC, relatively speaking, even when you factor in the retracements we saw in early December. Bitcoin’s market value still remains twice that of ETH.

Where ETH potentially enjoys the biggest edge over BTC is its use in ancillary growth sectors like DeFi and NFTs as well as within the metaverse. BTC seems to be evolving more in the direction of conventional currencies, responding to forex moves and being used by investors as an inflation hedge. ETH is likely to grow as the underlying industries that make use of it also mushroom.

Kadikar’s platform offers a feature called CloseCross Crowd Wisdom which provides real-time data on the views and investments of other traders enabling investors to make a more informed forecast based on increased transparency. People can choose to follow the crowd or go on their own views.

CloseCross is regulated under MIFID II rules offering increased protection and transparency for customers. Unlike other trading platforms, there are no participation fees for using CloseCross, and its patented multiparty model ensures that leverage is not needed to achieve potentially outsized returns.

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Money placed on incorrect predictions is lost, but you never lose more than what you put in as there is no leverage needed or possible on the platform. Users pay facilitation fees, only on their winning trades, giving them significant savings when compared to traditional trading platforms.

The platform also provides real-time data on the predictions of other traders enabling investors to make a more informed forecast based on increased transparency. People can choose to follow the crowd or go on their own views.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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