Tether CEO Rejects Ethereum Investment, Sticks with Bitcoin

In a recent social media post, Tether CEO Paolo Ardoino rejected the idea of investing some of the company's profits in Ethereum.

Ardoino emphasized his preference for Bitcoin over Ethereum, citing Bitcoin’s fixed supply and immutability as key reasons. “Bitcoin is immutable. Only 21 million coins. Easy choice,” he remarked.

Last yeaar Tether announced plans to allocate 15% of its profits toward purchasing Bitcoin to bolster and diversify its reserves. At that time, Ardoino described Bitcoin as “a long-term store of value with substantial growth potential.”

Despite Tether’s latest quarterly report showing no change in its Bitcoin reserves and a record-breaking net profit of $1.3 billion, Ardoino later clarified that the company did buy Bitcoin through its investment arm in 2024.

This isn’t Ardoino’s first critique of Ethereum. Following the Merge upgrade in 2022, he argued that Ethereum still couldn’t compete with Bitcoin and criticized its frequent narrative shifts.

Ardoino also highlighted Ethereum’s poor performance compared to Bitcoin over recent years. The ETH/BTC pair has dropped 45% since its peak in December 2021. Although Ethereum saw a significant price surge in May due to the approval of various spot ETFs, it failed to sustain its momentum.

The future price action of Ethereum will likely depend on the level of inflows, which have so far been underwhelming, partly due to outflows from Grayscale’s product.