This asset manager is discarding Ether, changes it to Bitcoin
By Hannah Pérez
Two Prime, a cryptocurrency investor recorded in the US, will completely reduce its exposure to ETH to focus only on bitcoin. The CEO argued that Ether “behaves more like a memecoin.”
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- Two Prime, a crypto investor in the US. UU. Will completely reduce its exposure to ETH.
- The firm cited the unpredictability and lack of recent impulse from Ethereum.
- Choose to focus only on Bitcoin due to Ether’s “memecoin behavior”.
- ETH has fallen about 50% price since January while Bitcoin has been strong.
Two Primecentered on cryptocurrency investment management, is abandoning Ethereum (ETH) As the prices action of the second largest cryptocurrency continues to disappoint investors with a “memecoin behavior.”
In a significant change in its strategy, the company announced this week its formal decision to cut all exposure to ETH citing the unpredictability of cryptocurrency and its decoupling with Bitcoinin which Two Prime Now he has chosen to focus.
While Bitcoin (BTC) has shown strength in the graphics in recent months, the reality of Ether It has been another completely, with the price of digital currency deteriorating about 50% since the beginning of the year.
After visiting a maximum of several years of USD $ 4,000 in December, in the midst of a broader bullish run in the market, ETH has become primarily bassist, thirdly below 1,900 since the beginning of April. Although BTC also faced pressure during the first quarter, its price has recently recovered above USD $ 97,000
The largest cryptocurrency in the world reached a historical maximum of more than USD $ 109,000 in January followed by a correction to USD $ 75,000 in April. Its price is now 20% higher, taking up the maximum of February. As a result of this asynchrony, the correlation with ETH has now fallen to the 0.019 level, almost 50% in the last 6 months.
Two Prime Discard ETH and focus only on Bitcoin
Two Primethat an investment firm registered in the United States, shared on Thursday the news in its X account, together with an link of an article published in Forbes in which CEO, Alexander Blume, reports the decision.
“From the November 2024 elections, ETH has shown very little rebound and a lot of negative impulse. Meanwhile, Bitcoin has greatly reversed, which means that people are “buying the fall.” With eth, they are not doing it “Blume wrote in the publication explaining a chart of the ETH profitability shared in X.
Why Two Prime Is Going BTC Only https://t.co/vtrqauygl0 pic.twitter.com/4BWVD8R7HM
– Two prime (@two_prime) May 1, 2025
The ETH profitability graph 30 days against future 30 -day profitability, which serves as a method to observe the impulse of an asset, shows little probability of recovery of the average tendency or positive impulse.
“The data suggest that ETH has changed fundamentally“Blume continued in the article while listing a series of factors that demonstrate the recent weakness of Ethereum facing Bitcoin.
Bitcoin has remained robust and consistent. Meanwhile, ETH has begun to behave more like a memecoin and has lost impulse on many fronts.
Two Primeformerly an important institutional sponsor of Ethereum which has been positioning as one of the largest companies in the trade of cryptocurrency derivatives, will now focus on managing and lending exclusively against Bitcoin As a result that ETH Risk-Reompensation profile has deteriorated to the point of being “unjustifiable”
The firm did not reveal how much exposure to Ethereum He had, exactly, before making the change, but said he has been borrowing more than USD $ 1.5 billion to investors to bet against BTC and ETH only in the last 15 months.
Ethereum It is lagging behind
Different analysts and cryptocurrency observers have agreed that Bitcoin He has been resilient in recent months before an uncertain macro environment, while the second main digital currency has lagged behind.
The highest flow of tickets between the funds listed in the stock market (ETF) in the cash of Bitcoin It has been a reflection of the renewed optimism of investors by cryptocurrency. But compared to this activity, the ETFs of Ethereum They have lagged behind, as Blume noticed. “The purchase of ETF of BTC has far exceeded that of ETH in almost 24 times“He said in the note.
A few weeks ago, the bank analyst Standard CharteredGeoffrey Kendrick, cut its price projection for Ether in more than 50%, from an objective price of USD $ 10,000 to one of USD $ 4,000 by the end of 2025.
ETH is negotiated at USD $ 1,850 at the time of writing these lines, 0.80% lower in the last 24 hours. BTC changes hands around USD $ 97,300, 0.44% higher in the period, according to data from Coinmarketcap.
Hannah Estefanía Pérez / Diariobitcoin
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