Grayscale Investments positioned itself in the cryptocurrency space as the world’s largest digital currency asset manager. Its products are available to institutional and individual accredited investors through their respective periodic and ongoing private placements and provides acquisition of Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Horizen (ZEN), Litecoin (LTC), Stellar Lumens (XLM), XRP, and Zcash (ZEC).
While Bitcoin was under the spotlight until now we see more expansion for the Grayscale Ethereum Trust and more money is poured in it. There is also a shift in perception from a crypto coder darling into an asset class. While Ethereum keeps its leadership status in the blockchain platform usage space, the DeFi boom opened the gates towards a new finance world and private and public stakeholders stepped into the game. Michael Sonnenshein, Managing Director at Grayscale Investments brought some insight of the new Ethereum trend worldwide.
Over the course of 2020 we are seeing a new group of investors who are Ethereum first and in some cases Ethereum only. There’s a growing conviction around Ethereum as an asset class.
The Grayscale Ethereum Trust reached 29.6 million shares outstanding compared with 5.2 million at the end of 2019. The money invested into the fund went from $20.1 million in Q4 of 2019 to $204.1 million in the Q3 of 2020, which means a x10 increase. And from this amount over 17% came from new institutional investors which means that the adoption moved to another level.
And with this increase an opportunity lays ahead for the investors in the Grayscale Ethereum Trust as well as the cryptocurrency market itself which might see some movements coming over the Ethereum price. There is an Grayscale Ethereum Trust Share Split even which is coming on December 17, 2020 which will imply a 9-for-1 split ratio. Comparing this with the other shares splits that were done this year like Tesla or Apple, we should see a spice in price until that happens and even afterwards as more investors could enter the space.
Investment fund: Grayscale Ethereum Trust (OTCQX: ETHE)
Event: Grayscale Ethereum Trust Share Split 9:1
Event Date: December 17, 2020
As I am a true believer in Ethereum I will keep an eye on the Grayscale Fund and maybe invest in it and add it to my stocks portfolio. This year marked new beginnings as the stocks markets intertwined with the cryptocurrency markets and fueled themselves on new highs. The world is changing and we better act in time if we want to be part of the first adopters and investors which will see maybe life changing gains. So let's see what the future will reserve for us and where Ethereum will go from here.
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