Coinfeeds Daily → Pantera Capital to Invest $100M in Ethereum Amid ETF Launch

Pantera Capital to Invest $100M in Ethereum Amid ETF Launch

Published: Jun 20, 2024 | Last Updated: Jun 20, 2024
Howard Kane

Pantera Capital plans a major Ethereum investment as Bitwise prepares for its spot ETH ETF, pending SEC approval.

Pantera Capital, a prominent investment firm, has announced its intention to purchase $100 million worth of Ethereum. This significant move comes in anticipation of Bitwise Asset Management's spot ETH ETF (Exchange-Traded Fund) beginning to trade.

Pantera Capital's Investment Plan

Pantera Capital's announcement highlights their optimism in the cryptocurrency market. The firm plans to invest $100 million in Ethereum, signaling strong confidence in the future of this digital asset. This investment is expected to take place once the SEC (Securities and Exchange Commission) approves the ETF prospectuses, which is anticipated by July 2.

Bitwise's Role and Seed Capital

Bitwise Asset Management has also played a crucial role in this development. They have allocated $2.5 million in seed capital for the Ethereum ETF. However, it is important to note that Bitwise has not yet purchased any Ethereum. The $2.5 million serves as a foundational investment to kickstart the ETF once it receives regulatory approval.

Regulatory Landscape and SEC Approval

The SEC's approval is a critical factor in this scenario. The regulatory body is expected to approve the ETF prospectuses, which would pave the way for Pantera Capital's substantial investment. This move comes after the SEC dropped its investigation into Ethereum's transition to Proof of Stake, confirming Ethereum's status as a commodity. This decision has significantly reduced regulatory uncertainty surrounding Ethereum.

Market Conditions and Lock-Up Period

While Pantera Capital's interest in the Ethereum ETF is noteworthy, it is not a legal commitment. The investment is subject to market conditions, which means that Pantera's final decision will depend on the state of the market at the time of the ETF's launch. Additionally, any shares purchased by Pantera will be subject to a 6-month lock-up period, ensuring a degree of stability in the initial phase of the ETF's trading.

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