Morgan Stanley Pinpoints The Advantages Bitcoin Has Over Ethereum

Published by
Morgan Stanley Pinpoints The Advantages Bitcoin Has Over Ethereum

Bitcoin continues to be the pinnacle of decentralization in the crypto industry. Morgan Stanley, a multinational banking and investment giant, is the latest to affirm this. Morgan Stanley stated that Bitcoin is more decentralized than Ethereum.

Advertisement

Morgan Stanley names the cons of Ethereum

In an educational primer authored by Denny Galindo, an investment strategist at Morgan Stanley Wealth Management, the banking giant made several criticisms of Ethereum, the second-largest cryptocurrency by market cap.

Barons noted that Morgan Stanley noted that while the top 100 wallets held 39% of the circulating supply of Ethereum, the corresponding figure for Bitcoin was 14%.

High concentration in the hands of a few entities is not the only issue the report raised against Ethereum. It notes that the network still does not have regulatory clarity and is tackling network congestion.

Morgan Stanley also maintained that in price volatility, Bitcoin had proven more stable than Ether. In addition, the report notes that Ether had shown more correlation to equities.

 While Ethereum and Bitcoin have had a 0.70 correlation to one another since December 2018, Ethereum has been nearly twice as correlated to the S&P 500, at 0.26, versus 0.14 for Bitcoin,  stated the report.

Advertisement

Ether is still an attractive addition to portfolios

Morgan Stanley’s criticisms of Ethereum have long been held as valid by the crypto community. It has been at the top of reasons for the emergence of “Ethereum killers” such as Cardano, and Solana among others.

Regardless, the case for investing in Ether (ETH) is very strong, the report notes, while not giving investment advice.

Galindo points out that the Ethereum blockchain continues to support a lion’s share of the decentralized finance (DeFi) and Non-Fungible Tokens (NFTs) market.

DeFi and NFTs give Ether use cases that will ensure its continued adoption and make it an attractive addition to some portfolios, the educative report informed.

The banking giant was also positive for the Ethereum blockchain’s planned migration to proof of stake that was likely to make Ether more scarce by making issuance deflationary.

Advertisement

Share
Olivia Brooke

Olivia’s interests spans across the Cryptocurrency and NFT and DeFi industry. She remains as fascinated by cryptocurrencies today, as she was back in 2017, when she first started reading up about them.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Uncategorized

Expert Flags Pi Network Team as Source of Selling Pressure After Reported 1.2M PI Dump

Pi community expert Mr Spock has claimed that the Pi Network team is behind the…

October 23, 2025
  • News

Ripple’s Chris Larsen Expands XRP Realized Profit to $764M Amid Evernorth Deal

Ripple executive chairman Chris Larsen has amassed millions in realized profit from XRP withdrawals since…

October 23, 2025
  • News

Just In: Hyperliquid Strategies Eyes $1B Capital Raise, Plans HYPE Token Accumulation

Hyperliquid Strategies has filed with the U.S. SEC to raise up to $1 billion through…

October 23, 2025
  • News

Senators Reaffirm Commitment to Market Structure Bill After Meeting with Coinbase, Ripple

Senate Democrats and Republican lawmakers have ended separate roundtable meetings focused on the Crypto Market…

October 23, 2025
  • News

How the Crypto Market Could React to the Next Fed Meeting on October 29?

The crypto market has, for a while now, been pricing a potential 25 basis points…

October 23, 2025
  • News

$1.68 Trillion T. Rowe Price Files for First Active Crypto ETF Holding BTC, ETH, SOL, and XRP

Rowe Price has filed for its first actively managed crypto exchange-traded fund (ETF). It is…

October 22, 2025