Bitcoin faces increasing competition from Ethereum as the price of the cryptocurrency rises faster than its more established competitors.
Major investors traded $250 million (£183 million) in Grayscale Ethereum Trust, the largest cryptocurrency fund, last month, before joining the Grayscale Bitcoin Trust, the world’s largest bitcoin fund, for the first time, according to CryptoCompare, a data provider.
Ethereum is up 368. This year is about five times higher than 69 pieces. For Bitcoin, up to $34,000 per token, compared to $50,000 per bitcoin.
Ethereum’s growing popularity means it now makes up 26% of all cryptocurrency funds. Bitcoin is still above at 68, but its lead is shrinking as assets in Bitcoin invested funds have fallen by 8.
However, some professional investors argue that Bitcoin, the oldest and largest cryptocurrency by market value, deserves a place in a diversified portfolio.
Skeptics believe that Bitcoin has no inherent value because few people use it to buy anything, Bitcoin has not been proven to be a “safe haven” and is threatened by legal restrictions that would render it useless.
So do you need to buy and is it safe to do so?