Ethereum just lost a major institutional backer. Two Prime, a high-profile algorithmic trading firm, has officially exited all Ethereum positions and will now focus exclusively on Bitcoin.
In a sharp critique, the firm labeled ETH “statistically broken” and claimed it now trades more like a meme coin than a dependable asset. This move underscores a growing sentiment among institutions questioning Ethereum’s direction, especially amid prolonged market underperformance and leadership uncertainty.
Two Prime, which has lent over $1.5 billion against crypto in the past 15 months, stated that ETH’s risk-reward profile is now "unjustifiable." The firm praised Bitcoin’s resilience, ETF dominance, and predictability as reasons for going BTC-only.
Ethereum’s decline—down 51% year-to-date and hovering under $1,850—stands in contrast to Bitcoin’s surge toward all-time highs. Confidence in ETH remains low, with prediction markets overwhelmingly betting it will stay under $1,900 through the weekend.
Two Prime didn’t hold back on Ethereum’s ecosystem either, criticizing its fragmented Layer-2 approach, stagnant leadership, and unclear monetization strategy. Solana was highlighted as a stronger competitor due to speed, user experience, and developer appeal.
Ethereum Foundation’s recent leadership restructuring might be a step in the right direction—but for Two Prime, it’s too little, too late.
