Bitcoin's (BTC) appeal to institutional investors was clear. Its simple narrative of digital gold, scarce assets, and uncorrelated assets quickly won the trust of many asset managers. In contrast, Ethereum (ETH), due to its complex structure and usability, took much longer to gain institutional acceptance.
Joseph Chalom, co-CEO of Sharplink Gaming, recently explained this distinction in an interview with the podcast "Bankless." "Ethereum is not just Bitcoin, so it took time to explain," said Chalom, a former BlackRock executive. Bitcoin, a scarce asset with a decade-plus track record and low correlation to traditional finance, made it easy to find a place in a portfolio, but Ethereum required a bit more explanation.
Ethereum begins with the concept of a platform that redefines ownership of digital assets and decentralizes the financial system. In other words, it's not a "savings asset" that needs no explanation, but a "financial infrastructure" that requires step-by-step understanding and education. Shalom likens Ethereum to one axis of the internet's evolution from Web 1 to Web 3, emphasizing, "While Web 1 and Web 2 created an internet centered on infrastructure and interaction, Web 3 is the foundation for integrating and operating real-world assets, DeFi, and stablecoins, and Ethereum is at the core of that."
Indeed, Ethereum operates beyond mere storage and serves as the foundation for various digital economic activities. At times, it even enters a "deflationary structure" where its supply dwindles, and various protocols and assets are built on Ethereum. CEO Shalom emphasized that education precedes simple purchases, saying, "Before purchasing Ethereum, institutions needed to understand how it could contribute to the next-generation financial system."
Sharplink Gaming currently holds the second-largest Ethereum holdings among public companies, with $3.6 billion, trailing only BitMine Immersion Technologies, which holds over $8 billion.
Shalom added, "In ten years, Ethereum's value will be much higher than it is now, and this will be due not to a simple price increase, but to its expanding role in the ecosystem." This could serve as a significant backdrop for the gradual influx of institutional funds into Ethereum.
Bitcoin's path was certainly straightforward. However, Ethereum, with its claim to be the "future of finance," requires far greater education and persuasion. And now, as this understanding gradually develops, ETH's value is entering a new phase.
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