Breaking News: Two Prime Ditches Ethereum for Bitcoin
Duo Abandons Ethereum in Favor of Bitcoin, Labeling Ethereum as Exhibiting "Meme Coin" Characteristics
Algorithmic trading firm Two Prime has tossed Ethereum (ETH) out the window, labeling it "statistically broken."
Ethereum's down 51% Year-to-Date (YTD) and languishing below $1,850, while Bitcoin's riding high, nearing its all-time high, and gobbling up Ethereum Fund (ETF) inflows with a whopping $115B in assets.
Two Prime's calling it quits comes after citing Solana's appeal and Ethereum's leadership stagnation, stating that ETH's veered off course.
In a balls-out move on Thursday, Two Prime shared their bold decision to ditch ETH and channel all efforts into managing and lending against Bitcoin (BTC). And they didn't mince their words, blasting ETH for its unreliable trading patterns and declining institutional appeal.
CEO Alexander Blume spared no punches, "Two Prime is done with ETH."
The firm, a registered SEC investment advisor, shelled out over $1.5 billion in the past 15 months on BTC and ETH loans alone, but they argue that ETH's risk-reward balance has tanked to "unjustifiable" levels.
"ETH trades like a meme coin now, not a predictable asset," the statement roared.
Two Prime pinpointed Ethereum's consistent slump since the '24 U.S. elections, with Bitcoin relentlessly surging forward, as a major red flag.
As of now, ETH trades at approximately $1,833, plunging 51% YTD. Meanwhile, Bitcoin is trading at around $97,000, just 11% shy of its all-time high.
Traders on the Myriad prediction market are growing ever more skeptical about ETH's short-term prospects. At the time of writing, predictors betting on ETH to finish below $1,900 by Sunday night stand at an impressive 82%.
CoinGlass data reveals that BTC ETFs tower above their Ethereum counterparts, managing a staggering $115B in assets, compared to Ethereum ETFs' humble $6.68B. Moreover, Ethereum ETF inflows have slowed to a crawl since approval.
Two Prime wasn't shy about dissing Ethereum's direction either. They see Solana as the much sexier option for developers and users, boasting cheaper, faster, and smoother experiences. On top of that, Layer-2s have supposedly gutted the mainnet's value, leaving Ethereum without a clear revenue strategy.
Big-brained crypto enthusiasts argue that Ethereum has failed to innovate, while Bitcoin remains king due to its unmatched predictability and scale.
"The problem for ETH and its leadership," Two Prime concludes, "is that everyone but them seems to know that."
In a slightly related development, in March, the Ethereum Foundation hired two co-directors to help steer Ethereum from a 'rambunctious toddler' phase to a 'mature, responsible adult.' Hsiao-Wei Wang and Tomasz Stančak were appointed as co-directors in a bid to distribute technical and operational responsibilities at the highest level. The Foundation claimed the move would help Ethereum "transition from an early-stage project to a robust base layer of global finance."
[1] Two Prime Exits Ethereum: Statistically Broken. (2025, May 1). CryptoSlate. https://cryptoslate.com/two-prime-exits-ethereum-statistically-broken/
[2] Two Prime Dumps Ethereum, Will Only Lend Against Bitcoin. (2025, May 1). Decrypt.co. https://decrypt.co/80256/two-prime-dumps-ethereum-only-lend-bitcoin
[3] U.S. Firm Two Prime Ditches Ethereum for Bitcoin, Citing Unpredictable Trading. (2025, May 1). CoinTelegraph. https://cointelegraph.com/news/us-firm-two-prime-ditches-ethereum-for-bitcoin-citing-unpredictable-trading
- The algorithmic trading firm Two Prime, known for managing assets, has shifted its focus from Ethereum (ETH) to Bitcoin (BTC), labeling Ethereum as "statistically broken."
- Two Prime's decision comes after witnessing Solana's appeal and Ethereum's leadership stagnation, as they believe ETH has veered off course.
- CEO Alexander Blume has declared, "Two Prime is done with ETH," citing its unreliable trading patterns and declining institutional appeal.
- The firm has invested over $1.5 billion in the past 15 months on BTC and ETH loans, but they argue that ETH's risk-reward balance has become "unjustifiable."
- Two Prime's disdain for Ethereum extends to its short-term prospects, as predictors betting on ETH to finish below $1,900 by Sunday night stand at an impressive 82%.
- Interestingly, CoinGlass data reveals that Bitcoin ETFs outshine their Ethereum counterparts, managing a staggering $115B in assets, compared to Ethereum ETFs' $6.68B. The slowdown in Ethereum ETF inflows since approval further suggests a shift in investor sentiment.
