Slamming the door on Ethereum, Two Prime has officially cut ties with the second-largest cryptocurrency to go all-in on Bitcoin. The SEC-registered investment advisor‘s decision comes after six years of juggling both cryptocurrencies and completing over $1.5 billion in loans in the past 15 months alone. Their verdict? ETH just isn’t cutting it anymore.
The numbers tell a brutal story. Ethereum has nosedived 45% year-to-date as of May 2025, marking its worst performance since launch. Meanwhile, Bitcoin bounced back from market turbulence like a rubber ball, showing just how differently these assets now behave. ETH’s wild price swings in Q1 2025 weren’t just bad – they were multiple standard deviations of crazy. The prolonged price decline suggests a classic bear market pattern that could persist for several more months.
Two Prime didn’t mince words about ETH’s transformation. Once a respectable blue-chip digital asset, Ethereum has apparently gone full memecoin. The platform’s erratic behavior has made it a nightmare for institutional lending and algorithmic trading strategies. The dramatic decline in ETH-based ETP assets to $9.2 billion by April 2025 further validates the firm’s concerns. It’s like trying to predict the path of a drunk butterfly – good luck with that.
Ethereum’s fall from grace turned a once-reliable asset into crypto’s wildcard, leaving institutions scrambling to adapt their strategies.
The firm’s internal analysis revealed a grim reality: ETH’s fundamentals have weakened substantially. Trading volumes are down, market depth is shrinking, and institutional investors are heading for the exits. The ETH/BTC ratio has plummeted to a five-year low, and the asset hasn’t shown any meaningful recovery since the 2024 U.S. elections. The emergence of faster Layer 2 solutions has further eroded ETH’s market dominance.
Bitcoin, on the other hand, has emerged as the grown-up in the room. Its predictable behavior, regulatory clarity, and mature market characteristics have made it the darling of institutional lending.
Two Prime’s exit from Ethereum signals a potentially broader shift in institutional confidence. For regulated entities trying to manage risk and comply with regulations, Bitcoin’s stability looks like a safe harbor compared to Ethereum’s stormy seas.
The message is clear: in the battle for institutional adoption, Bitcoin’s boring predictability is winning over Ethereum’s volatile personality. Sometimes, being the reliable one pays off.
