Loading Up - The Daily Gwei #206

The sound of ETH being gobbled up is only going to get louder.

So obviously we’re all well aware of many large public companies (such as MicroStrategy, Tesla and Square) putting BTC on their balance sheets for one reason or another. Though BTC isn’t the only asset heading to public company balance sheets - ETH is slowly but surely being gobbled up by large companies and one company, Meitu, actually owns more ETH than BTC!

I’ve been saying for a while now that I think the leap from non-crypto to Bitcoin is much, much larger than the leap from Bitcoin to Ethereum (and everything else). Once you’ve had a taste of the crypto ecosystem there really is no going back - it’s a black hole that sucks you in and never let’s go. Much of what really sucks people in are the eye-popping gains during bull markets and “institutions” are no different - they make their way down the “risk curve” just like everyone else.

This risk curve naturally leads them to Ethereum and ETH which is a pretty good stop after Bitcoin - after all, once you buy BTC and learn a bit about it’s blockchain, there’s not much else you can do with it (it’s pretty much the complete opposite with Ethereum). Now, I don’t know if these public companies and institutions are aware of the triple point asset thesis or the “ultra sound money” thesis for ETH but I don’t think that matters all too much. What really matters is that they simply see ETH as an asset that will appreciate over the long-term alongside BTC (and probably even outperform it).

Public companies aren’t the only institutions loading up on ETH either - we already have the Grayscale Ethereum Trust (ETHE) that holds 3.2 million ETH, an Ethereum ETP in Germany and soon we’ll have an Ethereum ETF listed on the Canadian stock exchange (they already have a Bitcoin one). Of course we’ll be seeing more and more of these products going live as various institutions and companies feel the “fear of missing out” on the adoption of this new asset class.

I also expect to see many more public companies announce ETH purchases in the coming months for different reasons. Some will stockpile ETH to use as gas, some will buy it to stake in eth2, and some will put it on their balance sheet as a SoV/reserve asset. Though no matter the reason, I think it’s incredibly bullish that ETH went from being viewed as just an asset you use for gas and dispose of to being an asset that public companies want to hold in reserve.

Have a great day everyone,
Anthony Sassano

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All information presented above is for educational purposes only and should not be taken as investment advice.