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Ethereum Struggles with Institutional Adoption, Losing Ground to Bitcoin

Ethereum's eight-year support trend against Bitcoin has been broken, causing concern for its future. Tuur Demeester, founder of Adamant Capital, has described Ethereum as "dying a slow death" due to this development. The slow adoption by institutions is being blamed for Ethereum's setback, while Bitcoin continues to dominate. This could have implications for Ethereum's position as an asset class. Despite this, Bitcoin's price remains stable, while altcoins show mixed performance. The disparity between Bitcoin and Ethereum's adoption among institutional investors is due to Bitcoin's simpler use case and fixed supply, as well as its higher trading volumes in ETFs compared to Ethereum. Ethereum's scalability challenges and regulatory scrutiny, particularly regarding its transition to a proof-of-stake model, are also contributing factors. Institutional endorsement of Bitcoin ETFs has outpaced that of Ethereum, with major asset managers like Fidelity and Morgan Stanley adding Bitcoin ETFs to their offerings. Experts suggest that Ethereum needs to address scalability issues and redefine its role as a technology-driven platform to regain its competitive edge. Until then, institutional investment appears to favor Bitcoin.

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