Investment Adviser Two Prime Says Ethereum Has ‘Failed Beyond A Point Worth Engaging,’ Goes Bitcoin Only

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Investment Adviser Two Prime Says Ethereum Has ‘Failed Beyond A Point Worth Engaging,’ Goes Bitcoin Only

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Two Prime has said it would no longer be offering Ethereum to customers.

According to the investment adviser, “ETH has fundamentally changed.”

Two Prime is not the only institution that has lost faith in Ethereum in recent months.

Ethereum is being buffeted on all sides. Amid

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, the project has faced criticisms from its community,

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, and

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. Now, even as the project looks to address growing concerns and rally behind a clear vision, it has been hit with a potential institutional adoption blow.

Digital asset-focused wealth adviser Two Prime has said that it is switching to a Bitcoin-only focus and will no longer offer clients exposure to Ethereum. The firm

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this in a scathing statement released on Thursday.

“ETH’s statistical trading behavior, value proposition, and community culture have failed beyond a point that is worth engaging,” it said.

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According to Two Prime, “ETH has fundamentally changed” and is now trading “like a memecoin,” making it problematic for algorithmic trading and as collateral for lending. The firm cited the asset’s price action since Q4 and data comparing its volatility to Bitcoin and Dogecoin.

Ethereum is trading at around $1,850, down 55% from its Q4 high of about $4,100, while Bitcoin is down only about 12% from its highs. Two Prime said the data suggested that while investors were buying the Bitcoin dip, they were not buying Ethereum.

Meanwhile, the shared volatility data suggested that over a 30-day *******, Ethereum traded more like Dogecoin than Bitcoin.

“High volatility can be profitable at times, but for institutional investors and traders, higher levels of volatility equate to lower position sizing,” it said. “This makes institutional participation less attractive, suggesting declining trading volumes and market depth.”

This low institutional interest is perhaps already evident in the flows to spot exchange-traded funds.

“ETF buying of BTC has far outpaced that of ETH by almost 24 times. Even with a higher market cap, BTC total supply consumed by ETFs is more than double that of the ETH supply,” Two Prime said, positing that the failure of Ethereum ETFs to catch a bid could translate to less resource allocation towards their promotion and *****.

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on Coinbase.

Two Prime theorized that the cause of Ethereum’s problems was threefold. For one, the firm said the project is no longer unique in its role of powering decentralized applications and is falling behind competing chains like Solana in technological capability and performance.

At the same time, Two Prime repeated

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that Layer 2 chains are cannibalizing the Ethereum ecosystem’s monetization. Lastly, the firm said Ethereum had evolved into “a bureaucratic and ideological organization rather than one focused on building a tech product.”

Two Prime is not the only institution that has lost faith in Ethereum in recent months. Citing similar factors, Standard Chartered

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its ETH price target for 2025 by a staggering 60% from $10,000 to $4,000 in March. Similarly, VanEck cut its 2030 ETH target by 67% from $22,000 to $7,300 in October.

Still, Two Prime’s decision comes just as the Ethereum Foundation, the non-profit that serves as the network’s primary developer, appears to be taking steps to address concerns,

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a new organizational model and a renewed focus on Layer 1 improvements.

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