Key Points
- Ethereum co-founder Vitalik Buterin’s Bitcoin holdings are less than 10% of his portfolio.
- Ethereum saw a 4% surge after Buterin’s announcement, but later dipped 2%.
Ethereum’s co-founder, Vitalik Buterin, recently addressed the cryptocurrency community. This was in response to analyst Udi Wertheimer’s claim that every crypto investor should allocate at least 10% to Bitcoin.
Wertheimer had stated, “If you’re in crypto and you don’t have at least 10% of your portfolio in bitcoin I can’t help you. It should be like 70% but if you don’t even have 10% I literally can’t help you.”
Buterin’s Investment Strategy
Buterin disagreed with Wertheimer’s statement, revealing that his Bitcoin holdings are below 10%. This also applies to any asset outside of Ethereum. He said, “I hold less than 10% in BTC. But then again I’m under 10% in anything that’s not ETH.”
His investment strategy shows a strong commitment to the Ethereum ecosystem while maintaining minimal exposure to other assets. This strategy sparked debates over whether industry leaders should diversify their holdings or remain loyal to their primary blockchain projects.
Ethereum’s Market Performance
Following Buterin’s announcement, Ethereum recorded a 4% surge, reaching $3,419. However, the rally later faded and Ethereum was down by 2% in the last 24 hours. Despite the approval of multiple spot ETH exchange-traded funds (ETFs) last year, Ethereum has struggled to gain higher ground. In contrast, Bitcoin has enjoyed significant gains, causing concerns among Ether investors.
However, analysts suggest that large whale accumulation trends are supporting Ethereum’s price momentum. Reports indicate that Ethereum whales recently acquired 100,000 ETH during a price dip, reinforcing confidence in the asset. Both institutional and retail investors are closely monitoring Ethereum’s price action, with many anticipating further gains.
Ethereum’s network upgrades and growing adoption continue to attract strong backing. Institutional interest is evident, especially after the Securities and Exchange Commission (SEC) fast-tracked Bitwise’s Bitcoin and Ethereum ETF for listing on NYSE Arca. This move signals increasing demand for Ethereum from traditional financial markets.
Buterin’s Preference for Ethereum
Ethereum positions itself as a blockchain with broader functionality, supporting smart contracts, DeFi applications, and NFTs. On the other hand, Bitcoin remains the dominant store of value and is widely seen as a hedge against inflation. Despite Bitcoin’s massive market capitalization, Buterin’s strategy suggests that he sees Ethereum as the better long-term investment. His belief in Ethereum’s continued evolution could be a key reason why he prioritizes ETH over BTC or other crypto assets.
In response to concerns about Ethereum’s slow price growth, Buterin previously suggested that developers should focus on generating revenue and boosting Ethereum’s value through fee-burning mechanisms and staking incentives. His vision remains clear: make Ethereum more financially sustainable and attractive for investors.
