Pantera Capital’s $100M Bet on Bitwise Ethereum ETF

Crypto index fund manager Bitwise Asset Management revealed that Pantera Capital Management LP plans to invest $100 million in shares upon the SEC’s approval of trading for the Bitwise Ethereum ETF. This information was disclosed in a revised S-1 registration form submitted to the Securities and Exchange Commission (SEC), detailing the readiness for the potential launch of this highly anticipated ETF.

The revised filing also mentions that Bitwise has secured $2.5 million in seed capital, a crucial requirement typically provided by institutional investors before the launch of an ETF. This move follows competitor BlackRock’s recent success in securing $10 million in seed capital for its iShares Ethereum Trust (ETHA).

Despite Pantera’s significant interest, the filing highlights that this is not a binding commitment. Market conditions will ultimately determine the actual investment, which means potential buyers could invest more, less, or even withdraw completely when trading begins. If Pantera proceeds with its purchase, it must adhere to a six-month lock-up period, during which the shares cannot be traded on any open market. Instead, these shares can only be disposed of through redemptions or transactions with authorized organizations.

The SEC’s approval of spot Ether ETFs is imminent, as indicated by SEC Chair Gary Gensler, who suggests that this final step in the approval process will be completed soon.

Ethereum’s market activity reflects optimism surrounding this regulatory progress. According to Binance spot trading data, Ethereum is currently trading at around $3,557, showing a 4% gain in the last 24 hours. This uptick suggests that traders believe Ethereum is making significant strides in regulatory acceptance.

Further bolstering Ethereum’s position, Consensys announced that the SEC’s enforcement division has closed its investigation into “Ethereum 2.0.” This marks a significant victory for Ethereum, as the SEC will not pursue charges alleging that sales of ETH constitute security transactions.

Consensys shared this update on Twitter, celebrating a major win for Ethereum developers, technology providers, and industry participants. “The SEC has notified us that it is closing its investigation into Ethereum 2.0. This means the SEC will not bring charges alleging that sales of ETH are securities transactions,” the company stated.

Pantera Capital’s planned $100 million investment in Bitwise’s Ethereum ETF and the SEC’s closure of the Ethereum 2.0 investigation signal growing confidence in Ethereum’s regulatory standing. These developments are poised to strengthen Ethereum’s market position and pave the way for broader institutional adoption.