The Decentralized Innovation Story of Ethereum: ETH as a Basket of Growth Stocks Similar to QQQ
Ethereum Spot ETF Approved by SEC on 5/23, But Still Awaits Approval of S-1 Filing for Official Trading Listing. ETH Price Remains Stagnant, Some Believe Ethereum Has Yet to Find a Concise and Powerful Advertising Slogan, Potentially Hindering its Ability to Attract Older Investors in the Traditional Financial Market and Becoming a Major Obstacle for Ethereum Spot ETF.
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, while Bitcoin 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 hedging tool against inflation. This is a strong and powerful story.
Note: QQQ is an ETF issued by Invesco that tracks the Nasdaq 100 Index, including the 100 largest companies listed on the Nasdaq Stock Market, mainly consisting of technology stocks such as Microsoft, Apple, and Amazon.
In addition, the staking yield of ETH plays a role in investment portfolios and allows asset managers to run models. Ethereum is best suited for tokenization, which is a response to counterparty risk and lack of transparency during the 2008 crisis.
Ahluwalia believes that Ethereum is a decentralized innovation story. Centralized intermediaries such as 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 a “currency,” just like Bitcoin’s attempt to do smart contracts. Differentiation, specialization, and clear narratives are what lead to success. These assets complement each other, just like if someone builds a beautiful house near you, your assets will appreciate as well. So, when your neighbor sells their house at a higher price, you should support them.
Ahluwalia also mentions that BTC, SOL, and ETH have broad reach and application examples.
Bitcoin is associated with commodities, and we are in a commodity supercycle driven by quantitative easing, wars, deficits, etc. Solana is a story of gaming and decentralized exchanges.
Nasdaq as an exchange needs more competition, and users should have ownership on-chain, rather than Amazon or Netflix.
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Ram Ahluwalia
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