Matrixport: Ethereum Needs to Build a Stronger Narrative in the New Year to Attract Traditional Finance Investors

BlockBeats News, January 1st, Matrixport shared market insights on its social media platform:

In 2024, Ethereum's performance was disappointing, with its lackluster performance clearly starting after the launch of the Ethereum ETF, with inflows far below market expectations. Meanwhile, on July 31, 2024, Senator Lummis introduced a Bitcoin bill proposing to position Bitcoin as a strategic reserve asset.

In contrast, Bitcoin has successfully established its position as "digital gold" and a potential reserve asset, while Ethereum lacks a similarly compelling narrative among traditional finance (TradFi) investors. The lack of a clear use case may be one of the core reasons for Ethereum's underperformance.

Looking ahead, ETF issuers may need to take on the responsibility in 2025 to create and promote a more attractive narrative for Ethereum. Without additional support and market positioning, relying solely on Ethereum itself may be difficult to close the gap with Bitcoin.