'You don't have to really choose' between Bitcoin and Ethereum: Trader

Bitcoin (BTC-USD) has surged by over 80% in 2023. Ethereum (ETH-USD) is up by more than 65% over the same span after completing its Shanghai upgrade this week. But according to one trader, choosing where to invest shouldn't come down to picking one over the other.

"Wolf of All Streets" podcast host Scott Melker describes Bitcoin as "digital gold" and Ethereum as more of a technological investment. "I think you can love one, love both, and it's totally fine," Melker says. "You don't have to really choose. I think they're separate asset classes and should be viewed as such."

Be sure to watch Rachelle Akuffo's full interview with Melker here.

KEY VIDEO MOMENTS:

0:13 Melker's take on Ethereum's Shanghai upgrade.

1:20 Melker breaks down the Bitcoin vs. Ethereum debate

Video Transcript

RACHELLE AKUFFO: And I want to talk Ethereum as well, the Shanghai upgrade. Because obviously, we're seeing at least today, Ethereum off to the races here versus Bitcoin. I mean, up about almost 6% on the day. What are your takeaways from that? Obviously, a lot of excitement surrounding this.

SCOTT MELKER: Yeah, there was a bit of a nonsensical narrative that everybody who had staked their Ethereum for the past few years was going to try to withdraw all at once, which you couldn't do anyways, and sell all their Ethereum. But you have to remember that anyone who staked their 30 to Ethereum, which by the way, for most people, was over $60,000. But anyone who staked that 30 to Ethereum had no guarantee they would even be able to withdraw.

These are the people who are the biggest believers, the maximalists of Ethereum, who really wanted to help secure the network. So now that they're getting the opportunity to withdraw, they're going to continue staking. I think there were more people. And I can speak to this anecdotally from fund managers that I speak to in institutions.

There are a lot more people who are actually waiting to deposit because they would then know that they would be able to withdraw at some point. So we're actually seeing net inflows over the past 24 hours. It's going back and forth. But there has not been a huge demand for people to withdraw. And there are just as many people putting their money into the contract. I think that this is a huge development for Ethereum. Yet another major step in the right direction for the protocol.

RACHELLE AKUFFO: And do you think perhaps investors are more bullish on Ethereum given the use cases versus Bitcoin?

SCOTT MELKER: I view them as completely separate assets. I think that the flipping narrative is completely irrelevant. I view Bitcoin as a digital gold, store of value, flight to safety. And we've obviously seen that, especially, with the banking collapses a few months ago, and Bitcoin rise a few weeks ago. With Bitcoin rising from roughly 19,000 to over $30,000, Ethereum is more of a technological investment. It's a internet of value. And I think that we're starting to see that separation in people's minds. So I think you can love one, love both, and it's totally fine. You don't have to really choose. I think that they're separate asset classes and should be viewed as such.