Institutional investors are prioritizing Bitcoin over Ethereum in 2023. The report was published by the digital asset analysis firm Arcane Research. According to the research firm, the open interest of Bitcoin futures climbed 6% in Chicago Mercantile Exchange (CME), while Ethereum’s future has declined by more than 25% in the last month.

The data from this report suggests institutional investors are prioritizing Bitcoin exposure in their portfolio because of Ethereum’s future upgrades on the mainnet, which has a risk in the long term.

Retail investors may think the future upgrade of Ethereum will make the technology more sustainable in the long run, and Bitcoin’s proof of work consensus may not be a sustainable choice, but institutional investors’ behavior suggests exactly the opposite. They are speculating on the risk associated with ETH due to changes in running algorithms and updates. The recent trend of open interest in 2023 deviated from the normal trend of CME’s futures.

(By Trevor Holman)