A DeFi Focus Fund Converts all Cash Reserves Into Ethereum
Heat Capital—which is DeFi focused, investing in crypto protocols, has converted all their cash reserves to ETH. Considering their involvement in DeFi and crypto, their move makes sense and positive for the coin that's still struggling for direction, falling on a resurgent USD. The firm becomes the second, after Meitu, that plowed a significant amount of cash into ETH. For their move, they became the first public company in the world to hold ETH as part of their reserves.
ETH, like BTC, would eventually evolve to be a store-of-value contender, with even better deflation than Bitcoin. Accordingly, the firm's forays could be strategic, betting on the correct asset with huge potential to outperform a store-of-value asset. Investment is notably ahead of the transition to Eth2 and the integration of EIP-1559, a proposal reigning on rogue miners to lower Gas fees.
Impact on the ETH price:
Bullish. Public declaration of ETH purchases, especially the conversion from cash, is a boost for the project and the coin that's currently under immense pressure. The good news is the eventual transition to a more efficient and a low-or zero-Gas regime would turbo-charge ETH bulls, pushing prices to new levels.
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