Managers were surprised by Bitcoin and now focus on Ethereum
News about Bitcoin, Cryptocurrencies and Blockchain
American manager mocks the traditional financial sector by promoting Ethereum ETF
According to data from Hey Apollo, American managers already hold more than 870,661 bitcoins in their ETFs. The amount is equivalent to R$309 billion. Therefore, it is no surprise that they are already preparing for the launch of Ethereum ETFs, which is expected to take place in early July.
About to launch its Ethereum ETF, American manager Bitwise released a humorous advertisement mocking the traditional financial system. The focus is on the difference in times between the operation of these two mechanisms. Representing the traditional system, an elderly man appears, getting ready to go to sleep.
“But it’s 4pm,” replies a young man representing the cryptocurrency Ethereum.
“Yes, but I’ve been working non-stop since 9:30 in the morning,” the old man replies.
Trying to gain an advantage, the gentleman then claims that the young man would do the same if he moved billions a day around the world. This is when ‘Ethereum’ shows that it is already a major competitor.
“I actually move. You know, stablecoins, NFTs, bonds. You can access me 24/7.”
Finishing the joke about the traditional financial sector, the young man tells the old man to rest, since they will see each other the next day. “Tomorrow is Saturday,” the old man replies, noting that he will only be back in business next Monday.
Managers were surprised by Bitcoin and are now focusing on Ethereum
According to data from Hey Apollo, American asset managers already hold more than 870,661 bitcoins in their ETFs. The amount is equivalent to R$309 billion. Therefore, it is no surprise that they are already preparing for the launch of Ethereum ETFs, which should take place in early July.
In the case of Bitwise, the manager is responsible for the 5th largest Bitcoin ETF in the world with 37,775 BTC in BITB. Its administrative fee is 0.20% per year, which can be very profitable since Bitcoin is a long-term investment.
In other words, after attracting new clients, they are expected to keep their coins parked with them for 5-10 years, generating a 1-2% profit for the manager without much effort.
One of its biggest clients could be Pantera Capital. This is because the company has shown interest in buying US$100 million in this new ETF, the information was presented by Bitwise itself in a document sent to the SEC.
“Pantera Capital Management LP […] has indicated an interest in purchasing up to $100 million in total shares in this offering from Authorized Participants or in the market through broker-dealers,” the document states.
Other asset managers are expanding their businesses outside the US. VanEck, for example, launched its Bitcoin ETF in Australia on Wednesday (19). In the announcement, it noted that BTC was the best investment in 9 of the last 12 years.
Cryptocurrencies are changing the world
As mentioned by Bitwise, one of the most striking features of cryptocurrencies is their operating hours, which are available at any time of the day, any day of the week. Some exchanges are even considering the possibility of increasing their operating hours to accommodate these investors.
In any case, the benefits of cryptocurrencies go far beyond that. In the case of Bitcoin, it is often compared to gold, but it has better divisibility, transportability and even scarcity than the metal.
Ethereum, meanwhile, is being seen as a digital oil. That’s because its native currency, Ether (ETH), is used to pay transaction fees for other assets on its network, including stablecoins, NFTs, and anything else that can be tokenized.
Finally, even central banks are copying this innovation to create their own digital currencies. Almost every project around the world uses a variation of blockchain technology, created by Satoshi Nakamoto.
