Anton Chekhov once famously said, “I have good news and bad news for you. The good news is; we are not dead yet. The bad news is we are still alive.” After the setbacks experienced during Eid al-Adha, investors may have felt the same sentiment – we are still alive. However, the cryptocurrency world received some good news from Pantera Capital, proving that it is not dead yet. Let’s delve into the details together.
Pantera Capital, a prominent player in the cryptocurrency industry, has announced its plan to purchase $100 million worth of Ethereum (ETH) once Bitwise’s spot ETH ETF goes live. Bitwise, in its amended filing, disclosed that it has earmarked $2.5 million in fiat currency for the ETF but has not yet acquired Ethereum. Pantera Capital, through its associated investment funds, has expressed interest in buying up to $100 million worth of shares in this offering.
The significance of the $100 million investment becomes apparent when compared to Bitwise’s $200 million allocation for its Bitcoin ETF. This translates to 50% of the amount allocated for Bitcoin being set aside for Ethereum. The flow of funds into Ethereum ETFs will be a key metric to watch, revealing the demand for spot Ethereum ETFs in comparison to spot Bitcoin ETFs.
One interesting detail from Bitwise’s filing is the choice of exchanges for Ethereum trading. Surprisingly, Kraken was selected over Coinbase to provide custody services for Ethereum. Ethereum ETFs have received preliminary approval, a development bolstered by ConsenSys’s announcement that the SEC has ceased its investigation into Ethereum’s shift to Proof of Stake (PoS) and its classification as a security.
This regulatory clarity establishes Ethereum as a commodity and removes significant uncertainty surrounding ETH. With these positive developments, analysts are optimistic that the SEC will approve the ETF prospectuses by July 2, paving the way for trading activities.
Stay updated with our news on Telegram, Facebook, Twitter & Coinmarketcap. Please note that the information provided in this article is not investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
