Matt Hougan, chief investment officer of Bitwise, said Ether’s Treasury and holding companies address Ethereum’s narrative problem by attracting more capital and accelerating adoption in ways that package digital assets in a way that traditional investors understand.
Hougan told Cointelegraph that Ethereum has been working to define the function of generating income for traditional financial investors until its Aboriginal token Ether (Ether) (eth), packaged in “equity transactions”. Hogan said:
If you think of ETH in the past few years from a valuation standpoint, this is Wall Street’s answer to why it’s worthwhile. Is it a store of value? Is it a combustion mechanism? Is that income? Is this the production of the bet? Who knows? ”
“But if you take $1 billion of ETH and put it into the company and put it into the company, then you generate earnings. Investors are really used to companies that generate earnings.”
https://www.youtube.com/watch?v=bwzodbdbiuw
this Ethereum’s growing institutional interest This highlights the transformation of the 1-layer smart contract blockchain from a niche Internet community to an institutional asset 10 years after Mainnet went online in July 2015.
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Potential risks of ETH fiscal model
Hogan warned ETH Holdings Companythose who accumulate ETH through corporate bond sales and fairness as their core business model should carefully manage their debt and interest expenses Avoid over-mastering and explosion.
Hogan also recommended that the Treasury adopt ETH as a hedge against inflation in a small allocation for a long time, adding that short-term volatility could “suppress” those with lower time frames.
He said the risk of fundamental risks or the risk of assets and liabilities denominated in different currencies is also a problem that these companies must fight, as the downturn in the cryptocurrency market could impact companies’ ability to meet fees.
However, he clarified the risk of “disastrous relaxation” in which ETH Treasury or holding companies are forced to liquidate all of their cryptocurrencies to meet their debt obligations, which remain low due to the long maturity of corporate debt.
“I think people’s image of catastrophic relaxation is also wrong, even in bad situations. Slow and slow relaxation is what actually happens,” Hogan said.
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