Ethereum: A Decentralized Innovation Story, ETH as a Basket of Growth Stocks Similar to QQQ
Ethereum Spot ETF Approved by SEC on 5/23, But Official Listing Requires Approval of S-1 Document. ETH Price Remains Stagnant, and Some Believe Ethereum Has Yet to Find a Concise and Powerful Advertising Slogan, Which Could Become a Major Obstacle for Ethereum Spot ETF to Attract Elderly Investors in the Traditional Financial Market.
Ram Ahluwalia, Founder and CEO of Lumida Wealth, believes that positioning is crucial. Ethereum is like a “decentralized app store” with a basket of growth stocks similar to QQQ. Bitcoin, on the other hand, is positioned as a commodity, and SOL is a story of gaming and decentralized exchanges. These assets complement each other and help each other grow.
Ahluwalia believes that at the highest level, Ethereum is decentralized computing. At the user level, Ethereum is like a “decentralized app store.” ETH is closer to QQQ, a basket of growth stocks, rather than a hedge against inflation. This is a strong and powerful narrative.
Note: QQQ is an ETF issued by Invesco that tracks the Nasdaq 100 Index, which includes the 100 largest companies listed on the Nasdaq Stock Market, mainly in the technology sector, including Microsoft, Apple, Amazon, etc.
In addition, ETH’s staking yield plays a role in the investment portfolio and allows asset managers to run models. Ethereum is best suited for tokenization, which is also a response to counterparty risk and lack of transparency in the 2008 crisis.
Ahluwalia believes that Ethereum is a decentralized innovation story. Centralized intermediaries like Apple and Goldman Sachs have too much control, and investors will seek decentralized app stores like Ethereum, where control belongs to users, not gatekeepers.
Ahluwalia believes that the Ethereum community made a mistake when trying to position it as “money,” just as Bitcoin tried to do smart contracts.
Differentiation, specialization, and clear storytelling are key to winning. These assets complement each other, just like if someone builds a beautiful house nearby, your assets will appreciate as well. So, when your neighbor sells their house at a higher price, you should support them.
Ahluwalia also mentioned that BTC, SOL, and ETH have broad reach and application examples.
Bitcoin is associated with commodities, and we are in a supercycle of commodities driven by quantitative easing, wars, deficits, etc. Solana is a story of gaming and decentralized exchanges.
Nasdaq Exchange needs more competition. And users should have ownership on-chain, not Amazon or Netflix.
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Ram Ahluwalia
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