Bitcoin, Ethereum, and the wider cryptocurrency market are in the middle of a strong rally, with BTC trading above $79,000 and ETH above $2,400. As bullish sentiment builds across the market, Arthur Hayes — co-founder and former CEO of crypto derivatives exchange BitMEX, and a closely watched figure in the industry — has offered new comments on both assets in an interview with crypto journalist Laura Shin.

Ethereum Is His Largest Position Outside Bitcoin

Hayes disclosed that his largest portfolio position excluding Bitcoin is Ethereum. He observed that although ETH ranks second by market capitalization, it has yet to surpass its 2021 peak — an all-time high of roughly $4,880 set in November 2021 — and he argued that Ethereum carries a much lower risk of falling to zero than other cryptocurrencies, which makes it better suited to large-scale investment.

"Currently, excluding Bitcoin, Ethereum makes up the largest portion of my portfolio. Compared to other cryptocurrencies, the risk of Ethereum's value falling to zero is much lower. I invest a significant portion of my money because it is attractive in terms of expected return and risk ratio."

Hayes added that Ethereum's relatively weak performance in the recent bull cycle leaves significant room for recovery for ETH. In his view, if ETH breaks above the $3,000 level, its rise could accelerate and it could quickly climb above $5,000 — a level that would carry it past its 2021 all-time high.

"Since Ethereum's gains in this cycle have been relatively limited, there is still significant room for further upside."

For Bitcoin Exposure, Spot ETFs Make More Sense Than Strategy

Turning to Bitcoin, Hayes said investors who want BTC exposure through exchanges would be better off buying spot ETFs rather than shares of Strategy (MSTR), the software company formerly known as MicroStrategy that is known for holding large amounts of Bitcoin on its balance sheet. Strategy began buying Bitcoin for its corporate treasury in 2020, pioneering an approach that made its stock a widely used proxy for Bitcoin exposure in equity markets in the years before U.S. spot Bitcoin ETFs began trading in January 2024.

According to Hayes, Strategy made sense during the period when the market feared BTC could drop to $20,000, but the company's relevance diminished as liquidity expanded and the economic environment eased. He argued that an investor wanting exchange-traded BTC exposure could simply buy BlackRock's spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), or other ETFs — and, in his view, would have no reason to buy Strategy.

This is not investment advice.

Source: CryptoNews.net | BitcoinSistemi