Two Prime has officially kicked Ethereum to the curb, and it’s not being shy about the reasons. The firm has decided to drop Ethereum from its portfolio, calling its behavior more akin to a memecoin. Ouch. That’s a slap in the face for Ethereum, which once basked in the limelight of institutional interest.
Two Prime is now laser-focused on Bitcoin, the golden child of crypto. They’re touting Bitcoin’s liquidity and predictability, which is a nice way of saying Ethereum’s been all over the place.
Let’s talk numbers. Two Prime previously dabbled in over $1.5 billion worth of loans backed by both Bitcoin and Ethereum. But after a thorough quantitative analysis, it seems Ethereum’s wild ride has left it decoupled from Bitcoin’s trends. This isn’t just a casual observation; it’s a full-on rejection.
Ethereum’s value has plummeted by 45% in the first quarter of 2025, while Bitcoin has maintained its cool. BTC maintained a stable fundamental trend amidst market turbulence, highlighting the stark contrast in performance between the two assets. Meanwhile, Ethereum’s intent to adapt to market demands reflects its capacity to evolve rather than panic, yet that adaptability hasn’t translated into the stability institutional investors seek. Regulatory changes can significantly impact market sentiment, further complicating Ethereum’s position.
Ethereum’s unpredictable trading behavior has become a thorn in the side of risk-averse investors. It’s like trying to ride a bull in a china shop. Increased volatility and tail risk? No thanks. Institutional investors are all about stability, and right now, Bitcoin is the safe bet.
Of course, this shake-up has ignited debates. Some folks think Two Prime’s decision is premature, while others see it as a savvy realignment. Ethereum’s popularity among institutions might be fading, and that’s not a great look.
The market is shifting, and it’s clear that capital is concentrating towards Bitcoin. Meanwhile, Ethereum’s future hangs in the balance, with speculation about whether it’s hit rock bottom or is just getting started on its downward spiral.
In short, Two Prime has made its choice. Ethereum, welcome to the memecoin club. Good luck with that.
