Fidelity Executive Highlights Why Ethereum Investment Thesis May Be More Accessible for Institutions Than Bitcoin

A Fidelity executive suggests that the investment thesis focused on Ethereum (ETH) might be more accessible for institutions to comprehend in comparison to Bitcoin (BTC).

In a new Bankless YouTube interview, Fidelity director of research Chris Kuiper explained why the investment thesis for Ethereum may resonate more with traditional blue-chip institutions versus Bitcoin.

"With traditional investors, you could probably more easily go to them with something like Ether and show them these things and they would grasp that much quicker than the investment thesis for Bitcoin," Kuiper stated.

According to the Fidelity exec, grasping Bitcoin requires first understanding concepts like politics, philosophy, game theory, and economics. In contrast, Ethereum can be evaluated via simpler metrics and cash flow data that institutional investors are accustomed to analyzing.

"I imagine that you could probably get in front of an institutional investor and say, ‘look here’s the metrics, here’s the cash flow, put in your inputs,' and they’re looking at it like another financial instrument and they’re like ‘oh yeah, that makes sense to me,’" Kuiper explained.

He believes Ethereum's economic ecosystem enables institutions to construct more robust investment strategies and pricing models, weighing various scenarios and probability distributions.

At the time of this article, Ethereum is trading around $1,601 according to CoinMarketCap data, up slightly over the past 24 hours.

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Sep 28, 2023