Ethereum lacks a ‘simple one-liner’ elevator pitch for boomers. — Analyst

adminMay 25, 2024

Ethereum (ETH) lacks the “easy-to-understand” sound bites to attract baby boomers to a physical ETH exchange-traded fund (ETF), according to analysts.

“Ethereum still doesn’t have an elevator pitch, despite years of attempts,” said Glassnode senior analyst James Check (aka “CheckMatey”) in May after the U.S. Securities and Exchange Commission (SEC) approved eight spot Ether ETFs. This article was posted on X on the 24th. May 23

“Does such a simple one-liner exist on Ether? So what is it?” Bloomberg ETF analyst Eric Balchunas suggested that a potential obstacle to the success of the spot Ether ETF would be how it responds to investors in the 60- to 80-year-old age group.

“One of the challenges for Ether ETFs penetrating the 60/40 boomer era is distilling their purpose/value into easy-to-understand sound bites,” Balchunas argued.

“Bitcoin is digital gold.” What Balchunas reiterated is the simple selling point of Bitcoin (BTC): But Ethereum doesn’t have an equally simple selling point that investment managers can easily present to baby boomer clients, he suggested.

In a May 24 episode of the Bankless podcast, Matt Hougan, chief investment officer at Bitwise, explained that the difference between Bitcoin and Ethereum is to discourage new entrants into cryptocurrencies because they view them as different currencies, “like the dollar and the euro.” I suggested that it can often be confusing to people.

*Bitwise Chief Investment Office Matt Hougan appeared on the Bankless podcast. Source: No Bank*

Hougan argued that the easiest way to explain the difference is to use the analogy that there are different software companies that use their software in different ways. “SalesForce uses software one way and Microsoft uses software another way,” he said.

Hougan said each cryptocurrency asset acts as both an asset and a blockchain, and these blockchains can be optimized in different ways, much like software companies optimize their software differently.

Related: Ethereum ETF Launching Next Month ‘Definitely Possible’ — Analyst

The two are commonly compared by arguing that Bitcoin can be used to preserve value and be a safe haven, while Ethereum can be used to access decentralized finance (DeFi) services.

Meanwhile, others in the cryptocurrency industry have different ideas for a simple one-liner to differentiate Ethereum.

“Ethereum is like digital oil. What makes decentralized protocols run is gas. This is productive and profitable.” said Adam Cochran, partner at venture capital firm Cinneamhain Ventures.

The price of Ethereum has surged 19.56% over the past seven days after reports first emerged that the SEC was shifting from its hard-line stance on ETF approval.