Two Prime will only focus on BTC asset management and lending, abandoning participation in ETH

According to Foresight News, digital asset derivatives company Two Prime has stated that although it has been trading and lending with both BTC and ETH assets in the past, and has completed over $1.5 billion in BTC and ETH loans in the past 15 months, it will only focus on BTC asset management and lending in the future. Two Prime stated that ETH's statistical trading behavior, value proposition, and community culture have failed to the point where they are not worth participating in. Currently, as BTC can serve as an alternative, its risk return is fundamentally unreasonable. The data shows that ETH has undergone fundamental changes. Its correlation with BTC has decreased, and tail risk has significantly increased. Now, its trading style is more like a Memecoin than a predictable asset. Even during the turbulent period of the first quarter of 2025, Bitcoin maintained its fundamental trend, while ETH experienced multiple standard deviation fluctuations. This is due to the safe haven environment and widespread selling by long-term ETH holders. For algorithmic trading and ETH supported lending, this brings trouble because even considering the high volatility expectations of the digital asset market, the performance of the asset is no longer predictable