CNBC's Tanaya Macheel joins 'The Exchange' to discuss what's behind The Ether Machine, crypto legislation and more.

Dynamics Corp, a blank check company, has announced a merger with the crypto venture ether reserve to create a new entity named ether machine. This new company is expected to list on the Nasdaq under the ticker EHTM, with the deal anticipated to close in the fourth quarter. Ether machine aims to provide institutional investors with exposure to ether, emphasizing yield generation—a strategy likened to MicroStrategy's approach with bitcoin, but focused on ether.

The merger comes at a time of increased interest in ether, with recent regulatory developments including new crypto legislation and ongoing efforts by major firms like BlackRock to include staking in their ether ETFs. The broader crypto market has seen a shift in leadership from bitcoin to ether, and several companies are pursuing public listings to capitalize on this momentum. However, regulatory clarity around staking and yield generation remains a key concern for investors.

The crypto treasury firm hoping to be the 'MicroStrategy of ether'

Let's turn now to crypto as shares of the blank check company Dynamics Corp are higher on the news They'll merge with crypto venture the ether reserve to form a new company called the ether machine got that That deal is expected to close in q4 and ether machine will trade on the Nasdaq under the ticker ehtm It's a SPAC in other words CBC crypto reporter Tania McKeel says it's vying to be the micro strategy of ether but with a focus on generating yield Let's bring her in to discuss and tonight this room tonight This reminds me so much of stable coins where they went through this whole era where it was all about yield until it blew Up and so forth. Obviously, they're hoping that's not a good analogy and that this model is much more sustainable Yeah, Kelly This is really just the latest in a cluster of companies that is trying to be the kind of public vehicle for institutional Exposure to eat sharp link gaming is among one of them bit mine immersion technologies Which is that company that was recently? That is shared by fun strats Tom Lee and was recently backed by Peter Thiel as well You know on on the focus on generating yield ETH for a long time Has been more interesting to institutional investors than Bitcoin because of its ability to be able to earn that yield for investors You saw for the last year It really kind of lagged and died off and people sat on the sidelines in large part because of the regulatory clarity or lack thereof Around this asset and whether investors would be able to you know Fully take advantage of the staking mechanism that is available on ETH where which you don't have with Bitcoin So you really are seeing all of these companies kind of pile into this ETH Treasury strategy? At a time when you're seeing leadership shift in the crypto market from Bitcoin to ether in the last three months You throw up more than 140% just coming off It's you know record week of inflows into ether ETFs me meld Bitcoin up I think about 35% in the same has it gotten the regulatory? Okay then the kind of Staking or earning yield on ether or on these other cryptos Tania and does it involve leverage or are there other factors that would make? This a risky strategy not necessarily for the people who are receiving the yield but kind of for the crypto ecosystem more broadly So we're working on that I think a lot of people are hoping that once again blackrock is going to take the lead here just last week just before You saw the new the big news on Friday, which I'll mention in a second you did see blackrock kind of update the filing for its popular ETH ETF to Hopefully be able to have the SEC approve the inclusion of staking in that ETF You know is the regulatory clarity there? We're not sure so I guess the answer is no, but we did see on Friday Trump, of course signed the first official crypto legislation into law And that should really open the door. You've seen all of this interest in Tokenization which includes stable coins from big brands and from institutions We know that this is a very pro crypto Congress and White House So the the momentum is moving in the right direction to get that clarity and I guess then to the point the market this IPO is proceeding full steam ahead assuming that it's going to be fine because the main Attraction is the yield that you would earn a kind of the again the micro strategy model you get Appreciation and yield at least while the crypto price is appreciating Yeah, absolutely. It's it seems like it is open season for you know Public listings of crypto companies whether that is going through an IPO or through a SPAC And I think just this morning you saw BitGo file Confidentially to go public. We saw another one last week. So it should be a really exciting year We got the stable coin legislation through and I think Trump said that he wants to see this a similar Thing happen with the Clarity Act before the August recess So still still a long way to go and making it very exciting August IPO market for what is otherwise a very sleepy month Taneya, thanks fam. Taneya McKeel down at the NIC for the full story head over to CNBC.com

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