Two Prime Abandons ETH Support
Reflecting Ether’s price difficulties during the initial quarter of 2025, the US-based investment advisory firm Two Prime has declared a significant strategic shift, discontinuing support for ETH in favor of an exclusive focus on Bitcoin YTD Decline.
Shift to Bitcoin-Only Strategy
US investment adviser firm Two Prime has dropped support for Ether (ETH) and adopted a Bitcoin-only strategy, citing ETH’s challenging price performance in the first quarter of 2025.
The firm announced on May 1st its decision to focus exclusively on Bitcoin (BTC) asset management and lending, after facilitating $1.5 billion in loans across both BTC and ETH over the past 15 months.
Two Prime contends that Ether’s risk-reward profile is now unjustifiable compared to Bitcoin.
Concerns Over Predictability and Value
Two Prime stated, “ETH’s statistical trading behavior, value proposition, and community culture have failed beyond a point worth engaging.”
This strategic shift occurs as ETH registered a 45% value loss year-to-date, although some market optimists speculate a price bottom might be near.
Emphasizing their data-centric approach as an algorithmic trading firm, Two Prime asserted that “data suggests ETH has fundamentally changed.”
They argued Ether no longer trades predictably and has de-correlated from Bitcoin in unfavorable ways.
“It trades now like a memecoin rather than a predictable asset,” the firm added, pointing out multiple significant deviation moves for ETH during Q1 2025’s market turbulence, unlike Bitcoin’s more consistent behavior.
Two Prime noted these conditions complicate both algorithmic trading and ETH-backed lending due to the asset’s lack of predictable behavior, even within volatile crypto markets.
Established in 2019, Two Prime holds registration with the US SEC and has provided services for both assets for six years.
Community Reaction Interprets Move as Bottom Signal
The critical remarks from Two Prime generated responses within the crypto community, with many viewing the negative assessment as a potential contrarian indicator signaling an ETH price bottom.
Social media comments ranged from questioning the firm’s relevance (“Never even heard of them”) to critiquing the statement’s logic by comparing ETH volatility to traditional markets like the S&P 500.
Several posters explicitly suggested the announcement could be an ETH “bottom signal,” indicating expectations of a price recovery.
Also Read: Two Prime Drops Ethereum Citing ‘Meme Coin’ Trading Shifts Focus to Bitcoin
