Ethereum, the world’s second largest cryptocurrency, will switch to Ethereum 2.0, the Proof-of-Stake algorithm in the near future.
Institutional investors closely follow this change in the Ethereum network. Even, according to Grayscale Investments data, these investors have been buying large amounts of ETH since the beginning of the year. So much so that we can say that ETH is gone scrambling among institutional investors.
Half went to Grayscale
Ethereum will switch to the PoS algorithm in the future, but continues to use the PoW algorithm for now. In other words, as in many other networks, ETH is produced through mining in ETH.
Ethereum miners excavated 1,563,245,875 ETHs from the beginning of this year until April 24. The interesting thing is that half of these tokens were purchased by a single company. Grayscale Investments had 5,230,200 shares for ETH on December 31. This number reached 13.255.400 on April 24.
Since each share corresponds to 0.09 ETH, this means that Grayscale sold 756,239,777 shares until April 24. In other words, this shows that Grayscale bought 48.4% of ETH excavated in 2020.
According to the news of CryptoPotato, we can see this mobility when we look at Grayscale’s Ethereum fund. In the first quarter of the year, 110 million dollars were transferred to this fund, which is a huge number compared to the previous quarters.
They Pay Extra
Institutional investors who invest through Grayscale pay a much higher fee than usual. According to company data, an investor is currently required to pay a $ 92 fee to buy ETHE shares.
The value of the asset corresponding to this stock is $ 17.70. In other words, investors are paying almost 420% more than they normally should.
According to users on Reddit, this is an indication of how hopeful institutional investors are from Ethereum. This may also be an indication that the Ether price will continue to rise in the future. Some users are unable to make sense that investors are paying such a high fee than usual.