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The decision comes after Ethereum’s sharp price drop in early 2025 and what the firm describes as a complete breakdown in the asset’s predictability. The post on their website is currently unavailable.
Two Prime, which had issued over $1.5 billion in loans backed by BTC and ETH over the last 15 months, cited Ethereum’s erratic behavior, saying it now trades more like a memecoin than a structured digital asset. The firm argued that such instability makes Ethereum unsuitable for both algorithmic strategies and lending models, which depend on statistical consistency.
The pivot reflects broader skepticism in institutional circles. Spot Ether ETFs, approved in mid-2024, have failed to gain traction compared to Bitcoin products, with capital inflows lagging far behind. Several issuers—including VanEck, ARK, and WisdomTree—have scaled back or withdrawn their Ether-focused offerings amid weak demand.
Despite this, Ethereum still holds the top spot among altcoins in the ETF market with $9.2 billion in assets under management, ahead of rivals like Solana and XRP. But Two Prime’s withdrawal adds to a growing list of institutions pulling away, as ETH continues to diverge from BTC in both price and perceived reliability.
While critics of the move see it as premature—or even a signal that ETH is bottoming out—Two Prime appears confident in its shift, aligning its portfolio with what it views as the only asset still behaving according to long-term patterns: Bitcoin.
The post Investment Firm Ethereum in Favor of Bitcoin-Only Strategy appeared first on Coindoo.
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