Grayscale Investments’ managing director, Michael Sonnenshein, said that investors are showing more interest in Ether (ETH) in recent times.
Sonnenshein said in a Bloomberg report today that the Ethereum network has gradually evolved from being a software programming tool into an investment choice.
Before now, newbies who ventured into the crypto industry mostly begin their journey with popular cryptocurrency Bitcoin (BTC), but there has been a growing interest in ETH this year, Sonnenshein said in a telephone interview.
“Over the course of 2020, we are seeing a new group of investors who are Ether first and, in some cases, Ethereum only. There is a growing conviction around ETH as an asset class,” he added.
Grayscale’s Ethereum Trust Confirms Sonnenshein’s Claims
Grayscale, which has products that track a few cryptocurrencies’ market value, including Ether, BTC, Litecoin (LTC), Ripple (XRP), among others, allows institutional clients to invest in these assets.
As of last year, Grayscale’s Ethereum Trust (ETHE) had only 5.2 million shares. However, according to data compiled on October 30, 2020, that figure has skyrocketed since the beginning of the year, as the investment product currently has 29.6 million shares outstanding.
The Grayscale Ethereum Trust accounts for $914.9 million out of the more than $7.6 billion in assets under management (aum), which cuts across ten investment products.
Grayscale’s ETH Purchase Spree
As interest in ETH soared tremendously, Grayscale embarked on a purchasing spree for the second-largest cryptocurrency by market capitalization, as announced on different occasions.
Grayscale was reported to have bought 756,539 ETH (approximately 50%) of all newly mined Ether between January 2020 and early April.
With such a feat, one would think Grayscale will slow down in purchasing the asset. However, the United States-based digital asset management firm announced another groundbreaking purchase of 75,419 ETH last month.
Based on Grayscale’s latest ETH purchase, the firm now holds 2.13% of the asset in circulation.
Affiliate: Get a Ledger Nano X for $119 So That Hackers Won't Steal Your Crypto!