Analysts believe that Ethereum (ETH) is lacking a straightforward and easily understandable selling point that would attract the baby boomer generation to spot Ether exchange-traded funds (ETFs).
James Check, lead analyst at Glassnode, stated in a post on X that despite years of attempts, Ethereum still lacks an elevator pitch. This comes after the United States Securities and Exchange Commission (SEC) approved eight spot Ether ETFs on May 23.
Eric Balchunas, an ETF analyst at Bloomberg, added that a potential obstacle for the success of spot Ether ETFs lies in how well it resonates with investors in the 60-80 year old age range. Balchunas argued that one of the challenges for Ether ETFs in penetrating the baby boomer market is distilling its purpose and value into a simple and easily understood sound bite.
While Bitcoin is often referred to as digital gold, Balchunas suggested that Ethereum does not have a similarly concise selling point that investment managers can present to their baby boomer clients.
Matt Hougan, chief investment officer at Bitwise, expressed on a Bankless podcast episode that explaining the difference between Bitcoin and Ethereum can be confusing for newcomers to the crypto space, as they may see them as different currencies, similar to the dollar and the euro. Hougan proposed using the analogy of different software companies using software in different ways to explain the difference between the two cryptocurrencies.
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.
Others in the crypto industry have different ideas for a simple one-liner pitch to differentiate Ethereum. Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, described Ethereum as “digital oil” that fuels decentralized protocols and is productive and yield-bearing.
The price of Ethereum has seen a significant increase of 19.56% over the past week since reports emerged about the SEC’s potential shift in its stance on ETF approvals.
Currently, Ethereum is trading at $3,753 according to CoinMarketCap.