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Cryptocurrency reserve companies are financing in the public market and investing their cash in cryptocurrencies. Due to the increasingly relaxed regulatory environment in the U.S., the number of such companies has surged in recent months. Early adopters mostly follow Michael Saylor's strategy of a Bitcoin-centric model, while recent entrants have included Ether, Solana, and other niche cryptocurrencies in their balance sheets.
Ethereum is the second largest cryptocurrency by market capitalization, and currently, two large institutions hold its funds, including Tom Lee's BitMine and Joe Lubin's SharpLink. Novogratz expects that the fund sizes of these two institutions will continue to grow, but he believes that new entrants may find it "harder to get oxygen."