The demand from institutions for Ethereum has surged on the occasion of its 10th anniversary, making Ether an alternative choice to Bitcoin in treasury reserves.
This marks a significant shift in the financial market, as many professional investors prioritize Ether as a diversification asset rather than focusing solely on Bitcoin.
MAIN CONTENT
On the occasion of its 10th anniversary, Ethereum has attracted significant interest from financial institutions.
Ether is increasingly seen as a treasury reserve asset alternative to Bitcoin.
Wall Street is beginning to expand its strategy to Ether to diversify its investment portfolio.
How does Ethereum's 10th anniversary affect the demand from professional investors?
Ethereum's 10th anniversary has boosted the demand for Ether storage from major institutions such as investment funds and multinational companies.
Market reports show that, thanks to the applicability of Smart Contracts and the developing DeFi ecosystem, Ether is considered a much more stable treasury asset than Bitcoin in the long term. This attracts CEOs and CFOs looking to minimize concentration risk.
Ethereum is becoming a strategic choice for companies seeking a more scientific asset reserve channel rather than just holding highly volatile Bitcoin.
Jane Fraser, CEO Citigroup, 2024
Why is Ether considered an attractive alternative to Bitcoin in treasury reserves?
Ether is not only the second-largest cryptocurrency but also possesses many technical advantages, helping to increase its utility and stability.
For example, the PoS system helps minimize environmental impact, gas fees are becoming increasingly optimized along with the development of Layer 2, which helps expand fast and cheap payment capabilities. These factors create high reliability from financial institutions.
“Ethereum's flexibility in adopting new technologies, along with a strong development community, provides a significant advantage for Ether as a treasury reserve asset.”
Vitalik Buterin, Founder of Ethereum, 2023
How is Wall Street changing its approach to cryptocurrency assets?
Traditional financial institutions are gradually expanding their portfolios beyond Bitcoin, actively adding Ether and DeFi assets to maximize risk management efficiency.
The latest report from Goldman Sachs indicates that over 65% of multi-asset investment funds added Ether to their portfolios last year to diversify their value storage channels. This creates a strong trend in the global financial market.
Frequently Asked Questions
Is Ether a better treasury reserve asset than Bitcoin?
According to many experts, with the Proof of Stake mechanism and a diverse ecosystem, Ether offers superior stability and versatility in treasury reserves.
How has Ethereum developed over the past 10 years to attract institutions?
Ethereum has completed its network with Smart Contract capabilities and the boom of DeFi, attracting investors looking to apply practical utilities and increase asset value.
How is Wall Street investing in cryptocurrency?
Wall Street is currently actively diversifying its portfolio, focusing not only on Bitcoin but also on Ether and DeFi assets to reduce volatility risk.
What increases the value of Ether compared to other cryptocurrencies?
Technical updates, reduced transaction fees, and a strong development community help Ether maintain its important position in the cryptocurrency market.
Can Ethereum replace Bitcoin in the future?
Despite Ether's many advantages, Bitcoin still plays a role as a safe asset; however, the trend of asset diversification is changing that position.
Source: https://tintucbitcoin.com/ethereum-kho-bac-vuot-100-ty-usd/
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