Ethereum ETF is about to be launched. What is the best narrative to promote Ethereum to traditional finance/Wall Street?
Bankless channel’s Ryan and David discussed the 7 main narratives of Ethereum and held a sales competition. They each prepared a 1-2 minute pitch and then analyzed each other’s content, discussing each viewpoint.
David: Today’s program was inspired by Eric Balchunas’ tweet, pointing out a challenge facing the Ethereum ETF: distilling Ethereum’s vision and value into a slogan similar to “Bitcoin is digital gold” to penetrate the world of the Baby Boomer generation. Does Ethereum have a simple slogan? If so, what is it? Bitcoin is digital gold. The beauty of Bitcoin lies in its simplicity, with a single concise slogan describing it clearly, while Ethereum’s scope is too broad, requiring at least 60 seconds to explain. Therefore, we have set a 60-second time limit for promoting the Ethereum ETF at the end of today’s program.
I believe Ethereum’s slogan comes from a broader understanding of Ethereum. Is there a single defining sentence for the internet? I’m not sure, but everyone knows what the internet is. For example, in the 1990s, the internet might have been called e-commerce, which is accurate, but only represents a small part of the total value the internet will eventually drive. The internet became a collection of various use cases. I believe Ethereum is the same, where a meme or slogan works for a period of time and then gradually disappears, replaced by another. Different narratives emerge every few years.
Ryan: In fact, this is a common criticism of Ethereum by Bitcoin maximalists, which I find interesting. They say Ethereum keeps changing its narrative.
David: It’s not just changing, it’s evolving. I identified the first four narratives that came to mind: digital oil, internet bond, programmable currency, and tokenization platform. These are some of the narratives we presented in Bankless. After this tweet, I further verified these narratives and added new ones to the list, coming up with seven different perspectives on viewing Ether as an asset.
David: I start with Ethereum as a tokenization platform because this is one of the most innovative perspectives in ETH promotion. When writing ETH promotional materials, Ryan and I usually don’t emphasize Ethereum as a tokenization platform role, as discussing Ethereum to sell Ether may seem odd. However, if you only have 60 seconds, this subtle difference is not important. For those who don’t understand the distinction, Ethereum and Ether are almost synonymous. And tokenization as a concept is widely appealing.
Zack Ryne’s view highlights this, stating that every financial asset in the world will eventually be tokenized on-chain. The slogan “tokenized world” has been popular in the crypto cycle. He asserts that it’s no longer a matter of “if” but “when.” Although regulatory transparency remains a challenge, BlackRock’s co-founder and CEO Larry Fink openly discussed this inevitability. While the SEC has traditionally been against cryptocurrencies, Larry’s Bitcoin and Ethereum ETFs have successfully gained SEC approval.
In addition, BlackRock has:
Launched its tokenized fund $BUIDL on the Ethereum mainnet, currently managing assets of $460 million.
Invested in Circle, which issues $USDC, the second-largest tokenized dollar asset.
Invested in Securitize, one of the leading tokenized asset issuance companies.
Used Circle and Securitize’s technology to issue $BUIDL.
Undoubtedly, $BUIDL will not be BlackRock’s last tokenized fund on public blockchains. Relying on Ethereum as a tokenization platform, and leveraging BlackRock and Larry Fink’s reputation (he has many elderly clients) is crucial. Understanding how he uses and sells ETH to his clients is very valuable. Therefore, Ethereum as a tokenization platform should be a core component of any typical ETH promotion in traditional finance.The role of resources required for smart contracts makes them an indispensable part of the Internet operation.
Ryan: The analogy of “digital oil” is very powerful. It emphasizes the practicality and necessity of ether, drawing a comparison between its role in the economy and that of oil. This narrative helps convey the idea that as more applications and transactions occur on Ethereum, the demand for ether will also increase, similar to how industrial activities drive the demand for oil. It is a simple and easy-to-understand metaphor that effectively communicates the practicality of Ethereum to a wide audience.
David: I agree. “ETH is digital oil” captures the core role of ether in the Ethereum ecosystem. It is a familiar and easy-to-understand analogy that makes it a powerful narrative to explain the value proposition of Ethereum, applicable to both crypto natives and newcomers. This narrative helps bridge the gap between complex blockchain concepts and everyday understanding.
David: Now, let’s discuss a narrative that may not be suitable for beginners but helpful for a deeper understanding: Ether as an Internet Bond. This concept is recognized within the crypto community but may be more complex for those new to Ethereum. Currently, the staking rate on Ethereum is around 3.2%. Staking ether means locking your assets in the network to earn this yield, similar to buying bonds.
This narrative compares ether to bonds in the DeFi context. It suggests that staking ether is a low-risk yield-generating activity in the crypto economy. However, this requires a foundational understanding of DeFi and the role of ether in it.
Ryan: I like this narrative because it clearly distinguishes Ethereum from Bitcoin. Staking ether provides a yield, similar to sovereign bonds, with the global sovereign bond market valued at around 70 trillion dollars. Comparing Ethereum to a country and staking it to bond yields helps explain the unique value proposition of Ethereum. This metaphor is very effective for those deeply involved in cryptocurrencies, as they understand how Ethereum secures property rights.
However, this is a challenging narrative for traditional financial audiences and first-time ether buyers. Currently, Ethereum ETFs do not offer staking rewards, meaning investors can only get the asset itself without the associated staking yield.
David: Yes. For those familiar with government or corporate bonds, calling ether an “Internet Bond” may be confusing. Without widespread background knowledge, it is difficult to explain why ether functions similarly to bonds in a decentralized network.
Ryan: Indeed. For traditional financial professionals, the term “bond” implies a secure, interest-bearing asset issued by governments or companies. Explaining Ethereum’s staking mechanism requires a lot of foundational knowledge, making this narrative challenging for those unfamiliar with cryptocurrencies.
David: While the analogy of ether as an Internet Bond resonates within the crypto community, it requires too much prior knowledge for a broader audience. It is a nuanced concept best suited for those who already understand Ethereum and decentralized finance.
David: The penultimate narrative to discuss is “Programmable Money.” This narrative, proposed by Eric @econoar in 2019, emphasizes Ethereum’s capabilities in smart contracts. If Bitcoin is digital gold, then Ethereum is programmable money. It positions ether as a dynamic, feature-rich asset. This narrative is concise and effective, pointing out the programmability that Bitcoin lacks.
Ryan: While the narrative of “Programmable Money” is compelling, it lacks depth in conveying the full potential of Ethereum. It does not necessarily imply an operating system, app store, or platform. Without additional context, it may appear as a single asset with if-then statements, overlooking the richness of the Ethereum ecosystem. In my view, while the app store analogy is not entirely accurate, it feels more comprehensive and appealing.
David’s Pitch:
Advantages: The promotional copy emphasizes Ethereum’s programmability and its role as a platform for financial app development, likening it to the App Store and Google Play Store. This analogy is very effective for traditional financial audiences familiar with tech platforms. The concept of the internet economy built on Ethereum and the income generated by its applications is a powerful viewpoint.
Disadvantages: For some traditional financial audiences unfamiliar with blockchain technology, this promotional copy may be too technical. The lack of simpler, more relevant terms like “tokenization” could be a missed opportunity.
Ryan’s Pitch:
Advantages: The promotional copy effectively anchors Ethereum to Bitcoin, making its broad potential more understandable. Emphasizing tokenization and its future applications paints a vision of Ethereum’s capabilities. The promotional copy also includes specific metrics like user and developer numbers and transaction volume, providing tangible evidence for Ethereum’s growth.
Disadvantages: The promotional copy may spend too much time on tokenization, potentially confusing the audience on this concept. While the phrase “other all things” is powerful, it may lack specificity in fully conveying Ethereum’s potential to traditional financial audiences.
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