The investment consulting firm Two Prime, registered with the Securities and Exchange Commission (SEC) of the United States, has announced a significant shift: the abandonment of Ethereum (ETH) to focus exclusively on Bitcoin (BTC).
In the first quarter of 2025, Ethereum (ETH) indeed experienced a particularly turbulent period, recording a decline of 45% of its value since the beginning of the year.
In any case, the decision by Two Prime, made public on May 1st, marks a radical change in the company’s strategy, which in the last 15 months had granted loans totaling 1.5 billion dollars in BTC and ETH.
Now, the focus will be solely on asset management and loans in Bitcoin.
Ethereum like a memecoin? The motivations of Two Prime
According to what was stated by Two Prime, the behavior of ETH has undergone a substantial change. “The statistical trading behavior of ETH, the value proposition, and the community culture have failed beyond a point worth engaging,” the company stated.
The company, specialized in trading algoritmico, emphasized that data is the foundation of its decisions, more than market narratives. And the data, according to them, is clear: Ether no longer behaves like a predictable asset.
On the contrary, it is now traded “like a memecoin,” with price movements that deviate significantly from historical patterns.
During the turbulence of the first quarter of 2025, Bitcoin maintained behavior consistent with its fundamental dynamics, while ETH showed anomalous variations, making any algorithm-based prediction difficult.
This has created, according to Two Prime, a “headache” for those operating in algorithmic trading and loans secured by ETH, especially in a context of high volatility in digital asset markets.
The announcement from Two Prime immediately sparked debate in the crypto community. Many users saw the statement as a possible bottom signal for ETH, meaning a hint that the price might have hit the low and is ready for a trend reversal.
“What a delayed statement,” commented an observer on X, comparing the volatility of ETH to that of the S&P 500, which has lost 4.7% since the beginning of the year.
Others have questioned the relevance of the company: “Never heard of them. Seems irrelevant,” wrote a user, criticizing the reliability of Two Prime’s analysis.
However, there were those who interpreted the move as a positive signal for ETH. “If this isn’t a bottom signal for ETH, I don’t know what is,” stated another user, highlighting the possibility of a price rebound after a bear cycle.
ETF on ETH: disappointing performance
Another factor that influenced Two Prime’s decision was the weak performance of the ETFs on Ether.
The company highlighted how the purchase of ETFs on Bitcoin has surpassed that on ETH by almost 24 times. Indicating a clear institutional disinterest towards the main altcoin.
According to Two Prime, the failure of ETFs on ETH has triggered a negative reflexive cycle. That is to say, the low demand has led institutions like BlackRock to dedicate fewer resources to the promotion and sale of these products.
Further strengthening the dominant position of Bitcoin in the mainstream market.
Despite this, Ether remains the largest altcoin by assets under management (AUM) among crypto ETFs, with 9.2 billion dollars at the end of last week, according to data from CoinShares. It is followed by Solana (1.4 billion dollars) and XRP (1 billion dollars).
After the SEC approval in May 2024, the spot ETFs on Ether had a slow start. Unlike the overwhelming success of the spot ETFs on Bitcoin, those on ETH struggled to capture the interest of investors.
Some issuers have already taken drastic measures. VanEck has ceased trading its futures on Ether ETF, while WisdomTree withdrew the proposal for the Ethereum Trust ETF in September 2024.
More recently, in March 2025, ARK liquidated its bull and bear ETF futures on both Ether and Bitcoin.
Bitcoin confirms itself as the dominant asset
The choice of Two Prime to focus exclusively on Bitcoin reflects a broader trend in the digital investment sector.
In an increasingly competitive and unstable market, BTC continues to represent a stable and predictable point of reference. That is, capable of attracting institutional capital and withstanding the most extreme fluctuations.
Founded in 2019 by Alexander Blum and Marc Fleury, Two Prime has built its reputation by offering trading and lending services on BTC and ETH.
However, the recent market dynamics have led the company to reassess its priorities, abandoning an asset that today appears, according to their analysis, too similar to a memecoin to be considered a reliable investment.
The future of Ether remains uncertain. On one hand, the loss of confidence from institutional players like Two Prime and the disappointing performance of ETFs represent worrying signals.
On the other hand, the reaction of the community and the dominant position of ETH among the altcoins indicate that the recovery potential cannot be ruled out.
In a constantly evolving sector, the ability to adapt quickly to changes remains fundamental.
And while Bitcoin consolidates its leadership, Ether will have to face new challenges to regain investors’ trust and reaffirm its role in the cryptocurrency landscape.
