As Ether’s price has struggled in the first quarter of 2025, a US-based investment adviser firm, Two Prime, has dropped support for ETH and adopted a Bitcoin-only strategy.After lending $1.5 billion in loans both in Bitcoin (BTC) and Ether (ETH) over the past 15 months, Two Prime decided to ditch ETH to focus solely on BTC asset management and lending, the firm announced on May 1.“ETH’s statistical trading behavior, value proposition, and community culture have failed beyond a point that is worth engaging,” Two Primes stated.
The firm’s shift to a Bitcoin-only approach comes as ETH has lost 45% of its value year-to-date, with some optimists speculating that ETH is potentially close to the bottom and reversing its negative trend soon.“Ether no longer trades predictably”“As an algorithmic trading firm, we value data more than narratives,” Two Primes said, adding that the “data suggests ETH has fundamentally changed.”In addition to de-correlating from Bitcoin, Ether has become no longer predictable, Two Primes argued, adding:“It trades now like a memecoin rather than a predictable asset.
Even during the turbulence of Q1 2025, Bitcoin remained within its fundamental behavior, whereas ETH saw several multi-standard deviation moves.”Two Primes then went on to say that such conditions “create a headache” for both algorithmic trading and ETH-back lending as the asset no longer behaves predictably, “even by the high volatility expectations of digital asset markets.”Founded in 2019 by Alexander Blum and Marc Fleury, Two Prime is an investment advisory firm registered with the US Securities and Exchange Commission.
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