Pantera Capital is excited about probably investing $100 million in seed funding for Bitwise’s Spot Ethereum (ETH) ETF if the fund is permitted for launch.
Bitwise’s June 18 S-1 modification states that Pantera has “expressed an curiosity” in buying the shares. Pantera plans to buy the shares from a licensed market participant or broker-dealer by way of no less than one affiliated funding fund.
If Pantera or any of its associates proceed with a purchase order pursuant to an expression of curiosity, they won’t be permitted to promote their shares within the open marketplace for six months, besides that they might eliminate their shares in a redemption transaction with an Approved Participant.
Pantera has not entered into any binding agreements or commitments to make any buy and will make investments roughly than the $100 million, or might not make investments in any respect.
Pantera optimistic about Ethereum ETF
in June 18 In a letter to traders, Pantera Capital CEO Dan Morehead and different workers wrote {that a} spot Ethereum ETF might entice a “important inflow of latest traders” who’ve beforehand been excluded because of compliance causes and brokerage account limitations.
The agency believes some traders could also be extra excited about and higher perceive Ethereum’s fame as a “expertise platform” than Bitcoin’s standing as “digital gold.”
The agency additionally acknowledged the assertion that Ethereum has underperformed expectations over the previous 12 months and a half, making the asset a “sturdy catch-up commerce candidate.”
Pantera added that ETFs might ship a “shock upside” as a result of expectations round inflows are low, however acknowledged that there’s additionally the potential for massive outflows.
The agency famous that Grayscale's ETHE fund is predicted to see outflows as soon as it begins buying and selling as an ETF, however because of fewer compelled gross sales, outflows could also be “minor” than Grayscale's preliminary GBTC outflows.
Pantera named Three Arrows Capital (3AC) and Genesis, which filed for chapter in 2022 and 2023, respectively, as compelled sellers that have been compelled to promote their GBTC holdings.
Chain impact
Lastly, Pantera mentioned approval of a Spot ETH ETF might have broader “ripple results,” together with market progress and diversification advantages. The corporate mentioned:
“The elevated consideration on ETH might have ripple results throughout the broader protocol world as traders take a look at Ethereum as a expertise platform.”
He added that ETH’s approval might result in larger integration with mainstream monetary merchandise, making blockchain “simply one other asset class” alongside the hundreds of different current securities dealt with by registered funding advisors (RIAs).
Pantera additionally advised that the approval might result in spot ETFs for different crypto tokens. Executives from JP Morgan, Bernstein and the Chicago Board Choices Alternate have equally mentioned the potential for different crypto ETFs, providing various ranges of optimism.
