"Investing in Crypto Reserve Companies Has a Higher Chance of Success Than ETFs"

It has been argued that investing in cryptocurrency reserve companies can yield better returns than investing in cryptocurrency exchange-traded funds (ETFs).

According to Cointelegraph on the 13th (local time), Cosmo Jiang, General Partner (GP) at Pantera Capital, and Eric Low, Head of Content, stated, "(A company's) Digital Asset Treasury (DAT) strategy can increase net asset value per share and generate additional returns," adding, "Investing in reserve companies can yield higher profits than directly purchasing crypto assets or holding them through ETFs."

They further explained, "A crypto reserve strategy increases per-share value by expanding the amount of crypto assets held," and "Over time, this approach allows investors to hold more crypto assets than by simply holding spot."

In particular, BitMine, which implements an Ethereum (ETH) reserve strategy, was identified as a best-practice example. BitMine, which holds around 1.2 million ETH, was the first investment target of Pantera's DAT fund. They commented, "BitMine is a model example, equipped with a clear strategic roadmap and the leadership to execute it. BitMine's Ethereum reserve strategy will prove its value over time."

Meanwhile, Pantera Capital has invested over $300 million in various crypto reserve companies in the United States, United Kingdom, Israel, and more.