Fund managers see more long-term growth potential in Ethereum (CRYPTO: ETH) than Bitcoin (CRYPTO: BTC), according to recent research.
What Happened: According to a fund manager survey conducted by CoinShares released on Tuesday, 42% of all fund managers interviewed view Ethereum as the cryptocurrency with the most compelling growth outlook. Only 18% of the respondents picked Bitcoin as their top choice.
Furthermore, Ethereum is also held by more fund managers than Bitcoin, although the two are close and just under 30%. Of those investing in digital assets, 35% consider their investments as speculative while 25% considered them as a diversification tool.
See Also: IS ETHEREUM A GOOD INVESTMENT?
Among those who have not invested in crypto, 21% said the main reason is regulation, 19% said that it was corporate restrictions while the third most popular answer was volatility followed by reputational risk.
Most fund managers viewed politics, government bans and regulation among the perceived key risks to investing in cryptocurrencies.
Price Action: According to CoinMarketCap data, as of press time Ethereum is trading at $3,422 after seeing its value increase by about 3% over the previous 24 hours.
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