Mike Novogratz, the CEO of Galaxy Digital, recently raised concerns about Ethereum’s performance, expressing disappointment over its lag behind competitors like Bitcoin and Solana.

Despite being a longstanding advocate for Ethereum, Novogratz acknowledged that ETH has underperformed, attributing this to ongoing regulatory pressures, particularly from the U.S. Securities and Exchange Commission (SEC).

In an interview, Novogratz pointed to former SEC Chairman Gary Gensler’s actions, such as his scrutiny of Ethereum-related projects, including lawsuits against entities like ConsenSys and questions over whether ETH itself could be considered a security. Last year, ConsenSys sued the SEC over its stance on ETH, although the SEC later approved the launch of Ethereum spot ETFs, affecting how investors view the asset.

While Bitcoin and Solana have reached new highs during recent bullish trends, Ethereum has struggled. Novogratz also touched on the shift in Ethereum’s market narrative. He noted that, unlike Bitcoin, Ethereum’s value proposition has evolved, with investors now viewing it more as a store of value and its potential role in Web3 technology driving interest.

Another challenge Ethereum faces is the uncertainty surrounding the Ethereum Foundation and its leadership. Novogratz acknowledged the “FUD” (fear, uncertainty, and doubt) surrounding Vitalik Buterin and the foundation, stressing the importance of maintaining a strong, research-focused foundation to advocate for Ethereum’s long-term growth.

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