Bitcoin is booming. Fund managers bet Ethereum will catch up.
Ethereum, the second-largest cryptocurrency, has trailed Bitcoin over the past year. Investors say the token has its troubles, but will have a strong 2025.
Australian cryptocurrency fund managers are increasing their allocations to Ethereum, the second-largest cryptocurrency by market capitalisation, anticipating it will soon reach new all-time highs.
While Bitcoin has surged nearly 70% above its 2021 peak, Ethereum has struggled to break through the USD4,000 barrier — well below its previous high of USD4,890. This lag persists despite Ethereum, like Bitcoin, being supported by multiple ETFs that facilitate institutional investor inflows.
Investors say Ethereum's days of underperforming are likely to change, if only because of a general market uplift.
"I find it really difficult to believe that if Bitcoin is at USD150,000 that Ethereum is not at USD6,000 or USD8,000," said Egor Sidelska, whose Magnet Capital, which boosted its Ethereum holdings relative to Bitcoin on Monday.
