– A bullish bet on Ethereum $ETH during the current crypto winter – quite an entertaining read.
– The entire crypto space is ~90% horrible.
– Ethereum is the #2 most legitimate crypto asset after Bitcoin.
– Transition to proof-of-stake converted Ethereum to a deflationary asset.
– Now with a bond with yield Ethereum could someday overtake Bitcoin as the #1 store of value.
– Several other L1 Ethereum competitors have been crippled by the current environment.
– Bad crypto news is no longer driving Bitcoin and Ethereum prices lower.
– $ETHE discount to its Ethereum holdings recently widened to 40%.
– Although the discount is unlikely to close any time soon due to high asset management fees, $ETHE provides a highly asymmetric payoff tree on top of spot Ethereum’s own highly asymmetric payoff tree.
– Payoff asymmetry – risk losing 100% for the chance to gain >1,000%.
– The medium-term downside risk from here seems lower than it has been in a while.
– Negative sentiment already baked into the 75% price decline from the peak.
Exp. gain: Not specified.
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