Two Prime Abandons Ether to Focus Solely on Bitcoin
Two Prime, a digital asset investment manager, ends support for Ether and shifts to a Bitcoin-only strategy.
The US SEC-registered firm Two Prime announced it will no longer offer Ethereum exposure, focusing solely on Bitcoin asset management and lending. According to the company, the decision was based on Ether’s trading behavior, value proposition, and evolving community culture.
Two Prime says ETH now trades more like a memecoin than a reliable asset, making its risk-reward profile unjustifiable. The firm says its conclusions are backed by data showing significant shifts in Ethereum’s underlying behavior.
Founded in 2019, Two Prime is one of the largest digital asset trading firms. Over the past 15 months, the company has become the second-largest lender for Bitcoin- and Ethereum-backed loans, completing $1.5 billion in lending.
Two Prime noted that BTC and ETH were the only assets liquid enough for institutional participation, which is why they initially offered both. However, despite ETH’s early success, its recent performance has made it less appealing to institutional clients.
Comparing Bitcoin and ETH price movements since the U.S. elections, Two Prime says Bitcoin has held up better, while ETH has struggled to rebound and has shown mostly negative momentum.
The firm also pointed to the underwhelming performance of Ethereum spot ETFs as further evidence of ETH’s pullback. Although the U.S. SEC approved Ethereum ETFs in July 2024, demand remains significantly lower than that for Bitcoin ETFs.
From a technical perspective, Two Prime noted that Ethereum faces growing competition from platforms like Solana, which they say offer faster speeds, lower costs, and better user experiences.
Beyond market performance and tech comparisons, Two Prime also highlighted internal challenges at Ethereum, including a lack of strong leadership and a clear product focus. In their view, Ethereum has become a bureaucratic organization – a byproduct of early success – rather than a team focused on building tech.
The report characterized Ethereum and its competitors as speculative tech startups, while framing Bitcoin as a digital asset with no real rivals.
Two Prime’s statement is controversial, considering recent shifts in market sentiment, Ethereum updates, and individual investment preferences.
The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.
Articles by this author
