Ethereum Investor Moves To Bitcoin as BTC Gains Store-of-Value Adoption

An experienced Ethereum investor announced today that they have decided to sell their entire Ether (ETH) holdings and switch to Bitcoin (BTC). The investor described the decision as difficult and necessary and explained how their investment strategy has evolved.

Hey all, my wife and I made a tough but, we believe, the right decision today:

We are converting all our #ETH to #Bitcoin. It’s a tough decision because I was there when ETH launched on Coinbase at $4 and that’s difficult to let go. It’s been a great ride, but it’s time.…

— Vik Sharɱa 🇺🇸 (@vikrantnyc) November 14, 2024

Looking back on their journey with Ethereum, the investor recalled the asset’s early success, including its launch on Coinbase at just $4. While recognizing Ethereum’s significant roles in decentralized finance (DeFi), Real World Assets (RWA), and NFTs, they expressed confidence that Bitcoin offers greater stability and security as a long-term store of value.

Growing Investor Interest in BTC

The ETH investor’s recent decision mirrors a broader trend in the crypto world, with many investors increasingly turning to BTC as their primary asset. In a related development, FOX’s Eleanor Terrett reported that the Pennsylvania House of Representatives has introduced legislation to allow the state to hold Bitcoin as a reserve asset, further strengthening BTC’s position as a store of value.

In line with the growing institutional interest, several U.S. state investment boards and pension funds have shown increasing interest in Bitcoin by investing through exchange-traded funds (ETFs). A recent SEC filing revealed that Teachers Insurance & Annuity Association of America (TIAA) holds $51,921 in the Fidelity Bitcoin ETF. 

While the Bitcoin stake is modest, its significance is amplified by the conservative nature of the investment sector. The filing also showed TIAA’s broader portfolio, which includes major companies like Danaher, Eli Lilly, and Honeywell. Interestingly, the BTC investment exceeds the value of the other positions.

State Pension Fund Invests in BTC

In May, the State of Wisconsin Investment Board (SWIB) committed $164 million to spot Bitcoin ETFs from Grayscale and BlackRock, representing about 0.1% of its total assets. Shortly after, in July, Michigan’s state retirement fund disclosed it held 110,000 shares in ARK 21Shares’ Bitcoin ETF, which equates to roughly 0.003% of its assets under management.

Other retirement systems, such as the Jersey City Employees Retirement System (ERS), have begun incorporating Bitcoin ETFs into their investment strategies. Meanwhile, a UK pension fund managing $65 million made a $1.95 million Bitcoin investment, marking a notable step in diversifying its holdings.