Matrixport: In the new year, Ethereum needs to build a stronger narrative to attract traditional financial investors

ChainCatcher message, Matrixport shared market insights on its social platform:

In 2024, Ethereum's performance has been disappointing, with its weak performance clearly starting after the launch of the Ethereum ETF, as the inflow of funds has been far below market expectations. Meanwhile, on July 31, 2024, Senator Lummis proposed a Bitcoin bill, suggesting that Bitcoin be positioned as a strategic reserve asset.

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

Looking ahead, ETF issuers may need to take on the responsibility of creating and promoting a more attractive narrative for Ethereum by 2025. Without additional support and market positioning, it may be difficult for Ethereum alone to bridge the gap with Bitcoin.