The ETH Strategy protocol has completed a fundraising round that raised a total of 12,342 ETH, approximately $46.5 million. This stage paves the way for the project's protocol launch in the near future.
Fundraising and Structure
The ETH Strategy protocol has completed its fundraising, resulting in approximately $46.5 million raised in Ethereum. The fundraising consisted of three categories: a private pre-sale, a public sale, and a puttable warrant. The private pre-sale raised around 6,900 ETH, while the public sale amounted to 1,242 ETH. The warrant option attracted 4,200 ETH in subscriptions. All three fundraising efforts include a four-month lock-up period, followed by a two-month linear unlock post-token generation event.
Impact on Ethereum Price
The commitment of ETH Strategy to stake 11,817 ETH contributes to the broader narrative of corporate accumulation of ETH. Rising institutional demand for ETH could drive prices, especially if Ethereum breaks the $4,000 mark. However, the potential increase in supply due to the unlocking period in 4 to 6 months may exert selling pressure. If prices fail to break above $4,000, a drop back to $2,500 is possible.
Prospects for Institutional Demand for Ethereum
The treasury model of ETH Strategy reflects a growing trend among institutional investors looking to accumulate ETH as an asset. The latest report for ETH ETFs has shown record inflows of $11.2 billion, indicating high interest from institutions in Ethereum. Furthermore, as regulatory clarity increases and ETH staking becomes recognized in corporate accounting, protocols like ETH Strategy may attract even more investment.
The launch of the ETH Strategy protocol and its strategic steps in accumulating ETH may significantly impact the Ethereum market. This is why many market observers expect this event to catalyze increased institutional interest in ETH.
