Pantera Capital I am interested in investing up to $100 Million in Bitwise‘s spot Ethereum (ETH) ETF as seed capital if the funds are approved to launch.
Bitwise’s 18th June S-1 amendment Pantera is a band that has been around since the early 1990s. “indicated an interest” In purchasing shares. Pantera will purchase shares in the stock market from participants authorized or brokers through one of their affiliated funds.
Pantera, or any of its affiliated companies that proceeded with the acquisition under indications of interest cannot then sell their shares at an open market sale within six months. They can, however, dispose of their shares through a redemption with authorized participants.
Pantera is not bound by any agreement, nor has it committed itself to an acquisition. The company could decide to invest less than or more than $100 million – or none at all.
Pantera ETF optimistic on Ethereum
The aforementioned is a June 18 Pantera Capital’s Dan Morehead wrote in a letter sent to investors that Ethereum ETFs with spot prices could be attractive. “a substantial influx of new investors” Formerly excluded because of compliance issues or restrictions on the brokerage account.
It believes some investors are more likely to be interested and better understand Ethereum’s reputation as an alternative currency. “tech platform” Compare Bitcoin’s Status As “digital gold.”
Ethereum underperformed in the last year-and-ahalf, according to the firm. This could have made the asset an unattractive investment. “strong catchup trade candidate.”
Pantera has added that ETFs may carry additional a “surprising upside” Despite low expectations, the potential for significant outflows was acknowledged.
It was noted by the firm Grayscale’s The fund may experience outflows once it becomes an ETF. Outflows are possible, but they could also be “less material” Grayscale GBTC has experienced a smaller outflow than in the early days due to fewer sellers.
Pantera named Three Arrows Capital 3AC GenesisGBTC holders forced into bankruptcy by.
Knock-on effects
Pantera has said the approvals of spot ETH ETFs could be broader. “knock-on effects,” Including market growth and diversification. The firm claims:
“Increased attention on ETH may spill over to the broader universe of protocols as investors explore Ethereum as a technology platform.”
The report also noted that ETH-approved products could be more integrated with mainstream. financial Products that make blockchain “just another asset class” The registered investment advisers (RIA) are also responsible for thousands of securities.
Pantera said that recent approvals may lead to the creation of spot ETFs for crypto tokens. The executives at JP Morgan, Bernstein” Cboe They also expressed varying degrees optimism about the prospect of having other crypto-ETFs.
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Source: cryptoslate.com