Two Prime, a U.S.-based investment advisory firm, has made the decision to leave Ethereum (ETH) behind. The firm criticized the cryptocurrency for its erratic price swings, likening it to the unpredictable nature of memecoins. This move reflects the growing concerns around Ethereum’s volatility, which has made it challenging for Two Prime’s algorithmic trading strategies.
The firm’s exit follows a rough year for ETH, which has seen a 45% drop in value. Two Prime emphasized that Ethereum’s market behavior is diverging significantly from Bitcoin, with ETH experiencing “multi-standard deviation moves” that don’t align with its historical trends.
Despite the exit, Ethereum remains an important asset with $9.2 billion in assets under management in ETH-backed exchange-traded products. However, Bitcoin-backed ETFs have attracted stronger institutional interest, further highlighting the shift in investor sentiment.