Member-only story
Choosing Between Ethereum and Bitcoin in the Face of Increased Macroeconomic Risks
Macroeconomic worries have dominated headlines since November, with the tech-heavy NASDAQ 100 down 11.6 percent for the year.
While it’s difficult to predict where crypto values will end up in the short to medium term, not all of them have been hit in the same manner. This is clear when comparing the one-year price performances of the two most valuable cryptocurrencies, Bitcoin and Ethereum. Instead of focusing on individual enterprises, I examine the performance of the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (GET) (ETHE).
With $23 billion in assets under management, GBTC follows the Bitcoin (BTC) market price and charges a 2% fee. ETHE, on the other hand, covers Ethereum (ETH), has $7.5 billion in assets, and charges 2.5 percent in fees. Both are investment vehicles that have attained the status of an SEC reporting company, with one of their advantages being the ability to provide investors with exposure to BTC or ETH in the form of securities while avoiding the difficulties of directly purchasing, storing, and safeguarding cryptocurrencies.
Returning to the difference in pricing actions, this must be understood in the context of their particular uses, but first, some explanations are in order.
