Crypto investment fund Grayscale announced that it has purchased a massive amount of Ethereum for institutional clients.
Grayscale got 47k Ethereum in 1 day
Crypto investment fund Grayscale announced yesterday that it received more than 47,000 ETH. The fund also purchased more than 12,300 Litecoins.
Currently, Grayscale is one of the few regulated ways for accredited investors in the US to interact with cryptocurrencies. This is possible through the product “Trust”, a financial instrument that includes a certain amount of spot crypto per share offered to customers. You can make transactions or subscribe in the over-the-counter market.
“Trust” has changed things
This means that every time investors buy or subscribe to their “Trust” stock in an exchange, Grayscale must buy spot crypto on the open market to fully support Grayscale’s publicly traded offering.
The high demand for Ethereum yesterday caused Grayscale to purchase more than 47,000 ETH. Currently, this amount is over $ 76 million. Analysts hope the asset will rise above $ 2,000 this week and reach $ 10,000 by the end of this year.
BREAKING: Grayscale adds 47,000 $ETH worth $76.7 million over the past 24 hours
— Bloqport (@Bloqport) February 3, 2021
Ethereum investor Ryan Sean Adams drew attention to the purchases in a tweet. “Public companies protect ETH, Grayscale has $ 4.5 billion in ETH, and ETH futures are starting at CME on Monday.” he said and added:
“Institutions are buying ETH. And they’re just getting started. “
Public companies staking ETH, there's $4.5b ETH in Grayscale, and ETH futures launch on the CME Monday.
The institutions are buying ETH.
And they're just getting started.
— Ryan Sean Adams – rsa.eth 🏴 (@RyanSAdams) February 3, 2021
Grayscale also published his thesis on Ethereum in a report yesterday. Phil Bonello, the firm’s research director, and other analysts discovered three aspects for valuing the asset: ETH as money, ETH as a supplies community, and ETH as a cash-generating asset.
The report can only be used by accredited investors.
Meanwhile, despite an institutional rush for Ethereum, the asset lags far behind Bitcoin in terms of assets managed in Grayscale. As of today, the firm holds over $ 23 billion in Bitcoin compared to just $ 4 billion in Ethereum.