The next generation of Apple Watch could feature both antennas in the band as well as Touch ID in the display.
Per a recently-published Apple patent application, Apple could be adding Touch ID to the display.
The description highlights stretchable antenna elements embedded into the watch band. The watch band provides wireless communication via an antenna embedded within the watch band in a manner that protects the structural integrity and operation of the antenna. The watch bands described provides antenna assemblies that adaptably stretch, bend, and flex with the bodies of the watch bands. The embedded antenna assemblies avoid damage from applied forces while also maintaining the compliance and comfort of the watch band while worn by a user.
Cool stuff if it comes true, and only time will tell.
Via The Mac Observer and Patently Apple