Analysts believe that Ethereum (ETH) lacks a concise and easily understandable description that would appeal to the baby boomer generation and attract them towards spot Ether exchange-traded funds (ETFs). Glassnode lead analyst James Check, also known as “CheckMatey,” pointed out that despite years of efforts, Ethereum still lacks a compelling elevator pitch. This comes after the United States Securities and Exchange Commission (SEC) approved eight spot Ether ETFs on May 23. Bloomberg ETF analyst Eric Balchunas also highlighted the challenge of distilling Ether’s purpose and value into a simple sound bite that resonates with investors in the 60-80 year old age range, which is a significant demographic for ETF success.
Balchunas reiterated that Bitcoin’s simple selling point as “digital gold” has been effective in attracting investors. However, he suggested that Ethereum lacks an equally straightforward selling point that investment managers can present to their baby boomer clients. During a Bankless podcast episode on May 24, Bitwise chief investment officer Matt Hougan discussed the difficulty of explaining the difference between Bitcoin and Ethereum to newcomers in the crypto space. He compared it to different software companies utilizing software in different ways, such as SalesForce and Microsoft. Hougan emphasized that each crypto asset serves as both an asset and a blockchain, and these blockchains can be optimized in various ways, similar to how software companies optimize software differently.
While some argue that Bitcoin is primarily used for value preservation and as a safe haven, with Ethereum focusing on decentralized financial (DeFi) services, others have proposed alternative one-liner pitches to highlight Ethereum’s unique qualities. For instance, Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, described Ethereum as “digital oil,” referring to its role as the fuel that powers decentralized protocols. He emphasized that Ethereum is productive and yield-bearing.
The price of Ethereum has seen a significant increase of 19.56% over the past seven days following reports of the SEC’s shift in its stance on ETF approvals. Currently, Ethereum is trading at $3,753, according to CoinMarketCap.