Quick Breakdown
- Luke Gromen says Bitcoin’s lack of yield makes it a safer store of value compared to Ethereum.
- Ethereum’s proof-of-stake model is attracting institutional investors seeking staking rewards.
- Bitcoin remains widely viewed as “digital gold,” with over $119 billion in public treasuries.
Gromen defends Bitcoin as a true store of value
Macro analyst Luke Gromen says Bitcoin’s inability to generate native yield isn’t a shortcoming but rather a strength that underscores its role as a safer store of value.
Speaking with Natalie Brunell on the Coin Stories podcast, Gromen pushed back on critics who dismiss Bitcoin in favour of yield-bearing assets like Ethereum.
“If you’re earning a yield, you are taking a risk,”
he said, describing such arguments as
“Anyone who says that is showing their Western financial privilege,”
Risk, yield, and the FTX reminder
Gromen pointed to the 2022 collapse of crypto exchange FTX, where investors were offered yield but ultimately lost their holdings. He likened yield in traditional banking to risk-taking, noting that “your money in the bank isn’t yours — it’s the bank’s.”
For him, Bitcoin’s lack of a built-in yield mechanism shields it from the systemic risks that come with interest-driven models.
Ethereum’s staking appeals to institutions
The debate comes as Bitcoin and Ethereum continue to be measured against each other. Ethereum’s proof-of-stake model allows users to earn staking rewards while securing the network, a feature some investors view as more attractive than Bitcoin’s fixed design.
According to CoinW chief strategy officer Nassar Achkar, institutional clients increasingly allocate treasury assets to Ethereum for its staking yield and role in tokenization ecosystems. Data from StrategicETHReserve shows that publicly listed companies now hold about 4.13% of ETH’s supply, valued at around $23 billion.
Bitcoin as digital gold
Despite not offering native yield, Bitcoin maintains strong institutional backing as a hedge against inflation, state control, and economic instability. Public treasuries currently hold approximately $119.65 billion worth of Bitcoin, according to BitcoinTreasuries.NET.
While Bitcoin holders can seek yield through third-party services such as lending platforms, Wrapped Bitcoin on Ethereum, or Bitcoin-related networks like Stacks and Babylon, Gromen argues the absence of native yield is what preserves Bitcoin’s identity as “digital gold.”
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