Pantera Capital is considering investing up to $100 million in Bitwise's proposed spot Ethereum (ETH) ETF as initial funding if the ETF is approved for launch. According to Bitwise’s June 18 S-1 filing amendment, Pantera has expressed interest in purchasing shares directly from authorized participants or broker-dealers in the market through its affiliated investment funds.

Under this indication of interest, Pantera and its affiliates would be restricted from selling these shares in an open-market transaction for six months but could redeem them through authorized participants. However, Pantera has not committed to a binding agreement and may adjust the investment amount or decide against investing entirely.

Pantera's CEO Dan Morehead and team highlighted in a June 18 investor letter that a spot Ethereum ETF could attract significant new investors who were previously deterred by compliance issues or brokerage account limitations. They noted Ethereum's appeal as a technology platform compared to Bitcoin's role as digital gold and suggested Ethereum could be viewed as a strong trade candidate for catching up on recent underperformance.

The firm also acknowledged potential challenges such as initial outflows from existing Ethereum investment vehicles like Grayscale’s ETHE fund, albeit less severe than early outflows from Grayscale's GBTC. Pantera speculated on broader market impacts, anticipating increased attention on Ethereum could spill over to other protocols and potentially integrate blockchain into mainstream financial products, expanding its role as a recognized asset class.

Pantera additionally mentioned the prospect of future crypto ETF approvals beyond Ethereum, echoing sentiments from industry peers about the evolving landscape of digital asset investment products.