ETHC Portfolio Update + Staking Rewards





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Ether Capital Newsletter
Ether Capital Newsletter
It was a big week for us at EthCap!
We announced an update to our portfolio to continue being a net accumulator of ether (ETH). We partially divested our stake in MKR at a 4.5x multiple to our purchase price and used the proceeds to buy more ETH.
We’re also excited to share that we’ve generated more than $200,000 (53 ETH) in staking rewards since December 2021. For those wondering about how the staking process works, you can check out our blog post that we published late last year about our journey.
Stay tuned because we’ll have more to share about our staking strategy in the coming weeks! 👀 💰
Other news that caught our attention this week:
The United States Federal Reserve released its long-awaited report on a U.S. central bank digital currency (CBDC) on Thursday and…
The Jury’s Still Out 🤷
Not surprisingly, the discussion paper tiptoes around the hotly debated 🔥 possibility of CBDC adoption in the U.S. Although it offers no clarity of when — or if — one will be issued, it did shed light into what it would take for a CBDC to be successful in America.
“The Federal Reserve’s initial analysis suggests that a potential U.S. CBDC, if one were created, would best serve the needs of the United States by being privacy-protected, intermediated, widely transferable and identity-verified,” the paper says.
In other words, The Fed recommends intermediaries like commercial banks 🏦 step in as gatekeepers rather than consumers using personal accounts at central bank locations to access digital dollars.
Unlike cryptocurrency, a CBDC would be issued and backed by the central bank. But it would differ from electronic transactions that happen through commercial banks and instead could give consumers a direct claim to the central bank akin to physical cash. 💵
The Fed also highlighted concerns, including financial stability and maintaining the U.S. dollar’s dominance as well as protecting consumer privacy. 🕵️
It’s encouraging to see government regulators be open-minded when it comes to adapting traditional banking infrastructure and there’s a lot of value in the open architecture of blockchain technology like Ethereum. It will really be dependent on how much control government officials are willing to hand over to consumers. Our belief is that regulators will adapt the existing infrastructure to a certain degree, but will want to maintain a high level of autonomy over the financial system. Bottom line: The exciting innovation is all taking place on open-source technology, similarly to how the Internet has evolved overtime, and it will continue to thrive regardless of CBDC adoption.
Crypto Mining 🖥️ vs. Gold Mining ⛏️
The energy debate when it comes to cryptocurrency feels as old as time, but lawmakers and industry players met at the U.S. House of Representatives this week to discuss crypto mining practices and its impact on the environment. 🌎
Brian Brooks, CEO of blockchain technology giant Bitfury and a former Comptroller of the Currency in the U.S., argued that Bitcoin is more energy-efficient than the banks.
“The banking system requires 573 TWh of power to produce USD1 trillion of value. That is about 2.5 times the amount of power required to produce the same amount of value in bitcoin,” Brooks said in his pre-published testimony for Thursday’s hearing.
At EthCap, we’re big believers in the proof-of-stake (PoS) consensus mechanism that could render energy-intensive mining obsolete. We’re committed to building on Ethereum and investing the majority of our portfolio in ETH as we see tremendous and upside for both the native token and innovation happening on the Ethereum blockchain.
Although Brooks reinforced his support for the proof-of-work (PoW) algorithm that relies on mining, he touted the future of PoS blockchains like Ethereum 2.0 saying they are “extremely important and valuable” part of the crypto ecosystem.
Crypto Panel Discussion 🚀
Our CEO Brian Mosoff will be speaking at next week’s PI Financial crypto conference about EthCap’s business strategy and overall developments in the sector. Be sure to sign up!
Newsworthy Links & Highlights
A new survey reveals that 62 per cent of Canadian respondents are interested in being paid in crypto within the next five years. While we wouldn’t necessarily recommend using volatile digital assets as a form of compensation just yet, it has become abundantly clear crypto is capturing mainstream interest in 2022.
Good news for Robinhood clients: As of Thursday, 1,000 waitlisted Americans can now withdraw crypto from the popular online retail investing platform. The company is beta testing its “crypto wallets” and testers can withdraw up to US$2,999 in crypto over a maximum of 10 total transactions daily. 
This is a good explainer published earlier this week on what liquidation means and how to avoid it when trading crypto derivatives.
Thank you for subscribing to our weekly newsletter! Feel free to visit our website or contact us at with any comments, questions, or just to say hello. 😎🚀
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