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In a surprising shift, US-based investment adviser Two Prime has pivoted from Ether (ETH) to Bitcoin (BTC), citing unviable risk-reward dynamics.
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The firm’s withdrawal from supporting ETH reflects broader market trends, as its value has dropped significantly in 2025.
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“ETH’s statistical trading behavior has deviated severely, diminishing its appeal,” noted Two Prime, emphasizing the challenges faced by ETH in the current market.
Two Prime’s shift to a Bitcoin-only strategy raises questions about Ether’s market viability as it continues to struggle against Bitcoin’s stability.
Two Prime Reassesses Ether’s Viability
In a move that is sending ripples through the crypto community, Two Prime has officially abandoned its support for Ether. The firm, which has traditionally managed both BTC and ETH, declared its shift on May 1, highlighting that the asset’s unpredictability has become untenable. This decision comes after a prolonged period of ETH trading behavior that the firm describes as “insupportable.”
Statistical Justifications Behind the Shift
According to Two Prime, the ongoing volatility of Ether has rendered it akin to speculative assets such as memecoins, rather than reliable cryptocurrencies. “Even during turbulent market conditions in Q1 2025, Bitcoin’s trading patterns remained stable while ETH exhibited extreme fluctuations,” Two Prime emphasized. This stark contrast raises crucial questions for investors seeking stability.
Community Reaction and Market Sentiment
Two Prime’s critique has sparked an immediate backlash from the cryptocurrency community. Many were quick to suggest that the firm’s exit from ETH might actually signal a market bottom, with various commentators on social media expressing skepticism about the firm’s conclusions. One user succinctly remarked, “If this isn’t a bottom signal for ETH, I don’t know what is,” highlighting the psychological factors at play in trading behaviors.
Persistent Belief in Ether’s Value
Despite the criticism from Two Prime, many investors continue to advocate for Ether, arguing that its developmental roadmap remains robust. Notable figures in the crypto space have pointed to upcoming upgrades and the growing ecosystem around Ethereum as signs of potential recovery. This divergence in viewpoints underscores the volatility and passion that define the cryptocurrency markets.
Institutional Trends: Bitcoin vs. Ether ETFs
Two Prime’s analysis extends beyond mere price observations; it points to institutional trends in exchange-traded funds (ETFs) as well. For instance, Bitcoin ETFs have garnered almost 24 times the interest compared to Ether ETFs, indicating a decisive preference among institutional investors. This disparity raises questions about the longevity of Ether as an attractive investment vehicle in the face of comparative underperformance.
Current Asset Under Management Overview
Even amid its struggles, Ether retains its position as the largest altcoin for crypto ETFs, boasting an assets under management (AUM) figure of $9.2 billion. However, this figure pales in comparison to the $220 billion in BTC ETFs, indicating a significant institutional shift towards Bitcoin. Analysts argue that the continued failure of Ether ETFs may solidify Bitcoin’s status as the digital gold of the crypto space.
Conclusion
Two Prime’s pivot from Ether to a Bitcoin-only strategy encapsulates the ongoing challenges facing Ethereum amid a rapidly evolving market landscape. As investors weigh these developments, the contrasting performances of Bitcoin and Ether raise critical questions about the future of both assets. The implications of this shift could shape investment strategies going forward, particularly as crypto markets fluctuate.
