Ethereum Hit Record High, Climbing 500% in 2021

Ethereum hit a record high on Wednesday, jumping nearly 500% on the back of growing interest in decentralized cryptocurrencies and increased institutional interest.

Ethereum, the second-largest cryptocurrency by market cap rose to $4,372, beating its previous record, up 2%.

Ether jumped nearly 500% against the dollar in 2021 as cryptocurrency platforms becomes more widely used away from the traditional banking institutions.

JP Morgan Bank said on Wednesday that the pace of development in the Ethereum market "has remained fast" and that there is still room for growth. Bank analysts said in a note that open interest in CME Ethereum futures increased to $540 million in three months.

"Once Bitcoin futures became more acceptable to institutional investors, they became more comfortable with cryptocurrencies, paving the way for faster acceptance of Ethereum futures," said JP Morgan.

However, US regulators on Tuesday warned investors about the risks of bitcoin futures in mutual fund investments. In a statement, the SEC said that Bitcoin was a highly speculative and poorly regulated market.

Finally, JPMorgan analysts warned last week that the growing assessment of Ether was not supported by data showing its widespread use.