- Ether Machine, a firm backed by Pantera Capital, is set to offer institutional investing in ETH. The yield fund will have 400,000 $ETH and is currently valued at $1.5 billion.
- The company will be formed by combining The Ether Reserve with Dynamix Corp, a Nasdaq-listed special purpose acquisition company.
- Unlike Ethereum and Bitcoin ETFs, the Ether Machine’s business model is focused on generating yield from holding and managing a large on-chain position of Ethereum (ETH) through strategies like staking, restaking, and DeFi participation.
Ether Reserve: Not An ETF
The firm has taken a different approach towards making Ethereum accessible for traditional investors working their angles in the cryptocurrency investing space. Designed for institutional investors, Ether Reserve has formed its entity with Dynamix Corp, a Nasdaq-listed special purpose acquisition company.
Following the partnership, Ether Reserve will also be listed on Nasdaq under the ticker “ETHM” with over 400,000 ETH.
The firm posted on X,
DeFI Focused Strategy
According to Ether Reserve’s website, the firm is not offering an ETF like Fidelity, BlackRock, Ark among others. Instead the firm aims to hold the largest holdings on the Ethereum chain and generate ETH denominated returns via DeFi activities like staking, restaking and managed participation in decentralized finance (DeFi) protocols.
Additional Reading: Ether Machine Founder Bullish On Ethereum, Mocks Bitcoin
Ether Reserve also confirmed that it will offer turnkey infrastructure solutions for enterprises, DAOs and Ethereum-native builders. The term turn key means the service provider will offer ready-to-use, comprehensive services and tools that allow these entities to easily build, deploy, and operate their blockchain-based projects without having to set up and manage all the underlying technical complexities themselves.
This announcement by Pantera backed firm ‘Ether Reserve’ comes after a growing trend in adopting Bitcoin and Ethereum for long term investments. What makes this investment vehicle different from traditional ETH spot ETFs is that the firm is truly committed to investing in ETH by participating in on-chain DeFI opportunities.
