Algorithmic trading firm Two Prime has dropped its exposure to Ethereum, citing that ETH now trades as a memecoin. The firm will now exclusively manage and lend against Bitcoin, believing it is the only digital asset meeting institutional standards. They noted a performance divergence between BTC and ETH, with ETH’s behavior no longer aligning with risk-adjusted return expectations. Two Prime also highlighted Ethereum’s weak institutional demand, erosion of its value proposition, and governance and cultural headwinds as reasons for their decision.

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