While Bitcoin is often marketed as “digital gold,” Ethereum hasn’t quite found its simple elevator pitch yet, according to crypto analysts.
Ethereum ETH$3,768 is lacking an “easy-to-understand” sound bite that will attract the baby boomer generation towards spot Ether exchange-traded funds (ETF), according to analysts.
“Ethereum still has no elevator pitch, despite years of attempts,” Glassnode lead analyst James Check aka “CheckMatey” wrote in a May 24 post on X, following the United States Securities and Exchange Commission’s (SEC) approval of eight spot Ether ETFs on May 23.
“Does a simple one-liner like that exist for Ether? If so, what is it?” added Bloomberg ETF analyst Eric Balchunas, while suggesting that a potential obstacle for the success of spot Ether ETFs will lie in how it resonates with those investors in the 60-80 year old age range.
“One of the challenges for Ether ETFs in penetrating the 60/40 Boomer world is distilling its purpose/value into an easy-to-understand sound bite,” Balchunas argued.
“Bitcoin is digital gold,” Balchunas reiterated is the simple selling point for Bitcoin
BTC $69,429. However, Ethereum doesn’t have an equally simple selling point that investment managers can easily present to their baby boomer clients, he suggested.
On a May 24 Bankless podcast episode, Bitwise chief investment officer Matt Hougan suggested that explaining the difference between Bitcoin and Ethereum can often be confusing for new entrants into crypto as they see it as different currencies “just like the dollar and the euro.”
Hougan argued that the easiest way to explain the difference is to use the analogy of there are different software companies out there, that use softwares in different ways. “SalesForce use software in one way, Microsoft use it in another way,” he said.
Hougan said that each crypto asset serves as both an asset and a blockchain, and these blockchains can be optimized in various ways, much like how software companies optimize software differently.
The two are usually compared by arguing that Bitcoin may be used to preserve value and as a safe haven, while Ethereum could be used to access decentralized financial (DeFi) services.
Meanwhile, others in the crypto industry have different ideas for a simple one-liner pitch to set Ethereum apart.
“Ethereum is like digital oil. It’s the gas that makes decentralized protocols run. It’s productive, and yield bearing,” partner at venture capital firm Cinneamhain Ventures Adam Cochran voiced.
Ethereum’s price jumped 19.56% over the past seven days after reports first surfaced that the SEC was pivoting from its hard stance on ETF approvals.
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