Recent activity in the institutional landscape of cryptocurrency investments has seen interesting shifts, with one SEC-registered investment advisor, Two Prime, announcing a complete exit from Ethereum, reports The Block.
The firm, known for its role in managing BTC and ETH-backed loans, has decided to wind down its involvement in ETH and instead pour all its efforts into Bitcoin.
Highlighting the reason behind this move, the report stated:
"After years of active participation in ETH markets and securing its place as one of the largest global lenders for BTC and ETH-backed loans, Two Prime has concluded that Ethereum no longer offers a viable risk-reward profile for serious asset management. The firm will now be exclusively focusing on Bitcoin as it pivots to new horizons."
Citing a failure in ETH’s statistical trading behavior, value proposition, and community culture, the firm has decided to shift its full focus to Bitcoin.
The firm added that while Bitcoin maintained a relatively stable behavior during Q1 2025’s market turbulence, Ethereum saw several multi-standard deviation swings, signaling structural instability.
Additionally, ETF demand tells a stark story – Bitcoin ETF inflows have eclipsed Ethereum’s by nearly 24 times, with BTC supply held in ETFs more than doubling that of ETH, despite Ethereum’s comparable market cap.
Further quoting the firm’s CEO, the report stated:
"From my perspective, ETH became a victim of its early success, growing into a bureaucratic and ideological organization rather than one focused on building a tech product. Bitcoin stands alone in its use case. It has no competitor in digital assets. It aims to be one thing, and it does it well. Institutions flock to economies and assets that are consistent and predictable."
This move comes as Cardano has now surpassed Ethereum in core developer activity, challenging traditional market narratives.
It is to be noted that while Two Prime’s ETH exit triggered a modest price dip, the broader market sentiment remains buoyant.
For its part, Bitcoin has sustained its dominance with steady gains despite all the market volatility. Ethereum was trading at $1,819.39 at press time.
