U.S.-based advisory firm Two Prime has abandoned Ethereum entirely, shifting to a Bitcoin-only strategy after years of managing both assets.
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 Several issuers—including VanEck, ARK, and WisdomTree—have scaled back or withdrawn their Ether-focused offerings amid weak demand.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.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/investment-firm-ethereum-in-favor-of-bitcoin-only-strategy/