ETH: Is it Finally Time to Rotate?
Turning Cautiously Optimistic
There is a lot of pain in the ETHBTC chart. It peaked in December 2021 and, save for several brief rallies, has been on a downwards slope ever since. It peaked at just under 0.09 and currently trades around 0.038.
Fortunately, we have anchored most of our attention on BTC and SOL this cycle, as BTC has continued to lead the market in a generally top-heavy, idiosyncratic market regime. In the Core Strategy, we have been underweighting ETH for the better part of the last 12-15 months, with a brief increase in relative favorability around the approval and launch of the ETH ETF. Admittedly, we may have been premature in calling the ETHBTC bottom during that time.
We maintain that ETH will have its moment in the sun. But it’s important to recognize that, much like BTC, ETH has transitioned into the realm of traditional finance. It has evolved from being the preferred asset for crypto-native capital seeking beta exposure to BTC to an asset that now relies on institutional capital stepping in as the marginal buyer.
Some Background on How We Got Here
For liquid funds in crypto, ETH has always been a core holding. However, for better or for worse, it has grown out of this role due to its size, its messaging problem, and its adoption by traditi...Reports you may have missed
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