Kaiko Research: Ethereum has underperformed Bitcoin since the Fed’s September rate cut due to weak institutional demand

Odaily News Since the Federal Reserve cut interest rates by 50 basis points last month, Bitcoin prices have risen 14%, surpassing $69,500 in early trading on Monday. This has been driven by strong inflows into spot ETFs and improved risk sentiment. Ethereum, while benefiting from similar macroeconomic factors, has underperformed Bitcoin, rising about 12% since the Fed's rate cut on September 18. In addition, according to a report released by Kaiko Research on Monday, the ETH/BTC exchange rate has fallen to its lowest level since April 2021, falling below 0.04 in October. The report noted that the decline highlights the slower institutional adoption of Ethereum compared to Bitcoin. Analysts said that the continued gap between Ethereum and Bitcoin's performance can be largely attributed to the latter's first-mover advantage, which dominates among institutional investors. They pointed out that open interest in Bitcoin CME futures recently hit a record high, while CME's Ethereum futures are still relatively low at 7,300 contracts (notional value of $970 million). “Demand for Ethereum in the spot market has also been sluggish. In October, Ethereum’s trading volume fell behind that of most altcoins. The trading volume gap between Ethereum and the top 50 altcoins widened to its highest level since March,” the report said. (The Block)