Institutional Blow: Two Prime Abandons Ethereum, Goes All-In on Bitcoin

April 28, 2025 – Crypto Markets Shaken

Ethereum has lost a significant institutional supporter. Two Prime, a renowned algorithmic trading and crypto lending firm, has announced a complete exit from all Ethereum positions, shifting its focus solely to Bitcoin.

In a candid statement, Two Prime described Ethereum as “statistically broken”, criticizing its market behavior and comparing its current trading patterns to that of a meme coin rather than a dependable asset. The firm’s decision reflects a growing wave of institutional doubt surrounding Ethereum’s direction amid continued market underperformance and strategic uncertainty.

Key Reasons Behind the Exit:

Poor Performance: Ethereum is down over 51% year-to-date and remains under $1,850, starkly contrasting with Bitcoin’s strong rally toward new highs.

Risk Profile: Two Prime stated ETH’s current risk-reward ratio is "unjustifiable."

Leadership & Ecosystem Concerns: The firm cited Ethereum’s fragmented Layer-2 solutions, unclear monetization strategy, and weak leadership as major red flags.

Praise for Solana: In comparison, Solana was recognized for its speed, ease of use, and growing developer ecosystem.

Two Prime, which has issued over $1.5 billion in crypto loans over the past 15 months, emphasized that Bitcoin’s resilience, regulatory traction (notably ETFs), and predictability make it a safer and more strategic investment going forward.

Although the Ethereum Foundation has recently restructured its leadership, Two Prime believes these changes are insufficient to regain confidence in the near term.

This high-profile exit could mark a pivotal shift in institutional sentiment, potentially influencing other firms to reconsider their exposure to Ethereum.