ETH Strategy has decided to launch an on-chain protocol. And even before that, it has raised a large amount of pre-launch funding. So far, the project has collected a total of 12,342 Ethereum, with an estimated market value of around $46.5 million. So, will this have any long-term impact on the price of ETH in the near future? Let’s find out.
This capital raise has been converted entirely into Ethereum. And this pre-launch funding was divided into three segments: Private Pre-Sale, Public Sale, and Puttable Warrant.
In the Private Pre-Sale, approximately 6,900 ETH was raised. In the Public Sale, 1,242 ETH was raised. And finally, protocol investors were offered a puttable option warrant, through which about 4,200 ETH worth of subscriptions came in. After collecting tokens in these three phases, there will be a 4-month cliff and a gradual unlock over the next 2 months.
In total, out of the 12,342 ETH raised from these three fundraisings, 11,817 ETH is exclusively for staking. The remaining 525 ETH will be kept for protocol development, audit, contributor salaries, and community initiatives.
Many traders on X are already praising ETH Strategy. Some are saying that the emergence of this protocol will usher in a new era of growing institutional interest.
Now the million-dollar question is, Will ETH Strategy’s staking and unlocking timing affect the price of ETH?
Will the Ethereum Treasury Fund Impact ETH Price?
We all know and believe that Ethereum is currently the biggest symbol of trust in the crypto market. The 11,817 ETH staking mentioned by ETH Strategy can be considered a significant part of corporate ETH accumulation and profitable treasury strategy. This protocol will create a new trustworthy place for ETH as a treasury asset, which may increase institutional demand.
Moreover, the total inflow into ETH ETF reached a monthly record of $11.2 billion. Not only that, but last month Ethereum’s price reached close to the $4,000 range, which is considered the upper limit of its long-term range. So, all these All-Time Highs clearly suggest a positive impact on Ethereum’s future price.
$4,000 is the ceiling for Ethereum, and it is still steady around $3,800. If it can cross $4,000, it may break out strongly and reach between $4,500 to $5,000.
However, the hope and caution are that if ETH fails to surpass $4,000 by the end of this week, it may drop back down to $2,500 again.
And yes, after the three token fundraising events of ETH Strategy are completed, the token unlocking will begin 4 to 6 months later. Until then, investors will have to wait for the distribution. But you must remain cautious during this time because as the ETH supply increases during unlocking, it may create selling pressure. And therefore, ETH may fall back to between $2,700 to $3,200.
Emergence of Ethereum as a Liquid Institutional Asset
ETH Strategy is different from other projects. The reason is its staking system and alignment with institutional strategies. Moreover, the puttable warrant is a relatively new form that gives investors the right to sell assets before a specific time. This reduces risk for investors.
Digital Oil
There are some companies that directly hold ETH. One notable among them is BitMine, led by Tom Lee. They have taken on the challenge of targeting to accumulate $1 billion worth of ETH within seven days. As of July 30, this company has stored 625,000 ETH.
Conclusion
Moreover, regulatory transparency around Ethereum is continuously increasing. ETH staking is also gaining recognition in corporate accounting. Therefore, protocols like ETH Strategy may attract many more institutional allocations. As a result, it will strengthen the network demand for ETH. Other institutions are also following ETH Strategy’s model, which is opening up various paths for utilizing liquid ETH.
