Brian Kelly, founder and CEO of hedge fund BKCM, is known by the crypto community as the author of The Bitcoin Big Bang: How Alternative Currencies Are About the World Change.
Kelly shared his views on how the ETH price will watch in the coming days in an interview with CNBC. The fund manager thinks that Ethereum should be treated like a technology stock. Kelly also touched on the few days remaining Merge update:
"Like all investment products, news is sold in cryptocurrencies. Nowadays, everyone wants to buy Ethereum because the Merge update is approaching. Thus, there is some rise. However, these figures are not satisfactory to me. I do not see any profitability at the moment, investors just spend their money "It protects against inflation. However, sometimes the news that happens in cryptocurrencies can also be bought. I am not very clear about this."
Kelly also answered questions about the ongoing correlation between Bitcoin and the Nasdaq.
"It was too high. The Nasdaq to Bitcoin correlation is somewhere around 60 percent. The Nasdaq to Ethereum correlation is somewhere around 70 percent for the past 30 days rolling. The crypto effectively acts as a 2x leveraged triple Q ETF [exchange-traded fund]. I think there is some nuance here, Bitcoin itself is not a tech stock. It is definitely an alternative currency. It is digital gold. You need it when your country destroys its currency, as many governments do today. Ethereum, on the other hand, can be thought of as a tech stock in a way, because it would disrupt a lot of the things tech stocks do today. To the extent that it drives daily active users away from places like Twitter, Facebook, and Google, I think there's something to be said for Ethereum being a technology stock."
Kelly stated that cryptocurrencies are currently acting like an exchange-traded fund with 2-3x leverage. The CEO also interpreted Bitcoin as a currency alternative, not as a technology company, unlike ETH.