Anton Chekhov once 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 declines experienced during the Eid al-Adha, investors may have felt the same way. However, the good news is that the cryptocurrency world is not dead yet, as revealed by Pantera Capital’s latest announcement.
Pantera Capital has announced its plan to buy $100 million worth of Ethereum (ETH) once Bitwise’s spot ETH ETF starts trading. Bitwise has allocated $2.5 million in fiat currency for the ETF but has not yet purchased Ethereum itself. Pantera Capital, through its affiliated investment funds, has expressed interest in purchasing up to $100 million worth of shares in this offering.
This $100 million investment in Ethereum is a significant move, especially when compared to Bitwise’s $200 million allocation for its Bitcoin ETF at the time. The amount allocated for Ethereum corresponds to 50% of the amount allocated for Bitcoin. The next important issue will be the inflow into Ethereum ETFs, which will provide valuable insights into the market dynamics.
In the filing submitted by Bitwise, Kraken was shown as the preferred exchange for Ethereum trading, over Coinbase. Kraken will provide custody services for the Ethereum. This development is supported by ConsenSys’s announcement that the U.S. Securities and Exchange Commission (SEC) has dropped its investigation into whether Ethereum’s transition to Proof of Stake (PoS) classifies it as a security, effectively confirming Ethereum’s status as a commodity. This has eliminated significant regulatory uncertainty for Ethereum.
In light of these positive developments, analysts are optimistic that the SEC will approve the ETF prospectuses by July 2, paving the way for trading to begin. However, it is important for investors to be aware that cryptocurrencies carry high volatility and risk, and should conduct their own research before making any investment decisions.
