Grayscale announced the purchase of more than $ 74 million in ETH tokens.
The world wants cryptocurrencies and Grayscale knows that. After announcing a massive purchase of more than $ 280 million in Bitcoin last week, Grayscale is now also betting on Ethereum.
According to a report issued by Grayscale to the SEC, the company said it had purchased 11,455 ETH for a total of $ 74,135,609. The decision follows a fantastic year for Ethereum, with the emergence of DeFi projects and the launch of Ethereum 2.0 as the main reasons behind the high price of its native token, ETH.
THE Genesis Trading, a US-regulated OTC crypto trading desk founded in 2013, acted as an intermediary to facilitate the purchase of tokens.
The Grayscale Ethereum Trust is a good (or unique) way for large institutions to invest in cryptocurrencies
Grayscale’s Ethereum token purchases clearly show the institutional interest and how big the traditional investors’ appetite for this emerging market is. Unlike a typical exchange, Graysacle products are fully regulated derivatives in the United States, making it completely safe to enter and operate with them.
In fact, the Grayscale Ethereum Trust (ETHE) is sold as “the only SEC registered way of investing in Ethereum”.
Investors buy shares in Grayscale’s trust funds with a commitment to hold their funds (like shares) for a few months. When the blocking period ends, they can sell these shares on the secondary market.
Grayscale does not participate in this market and does not buy back the shares of its customers. This market is independent and Grayscale does not guarantee its liquidity or price stability. Therefore, participants generally tend to win very lucrative prizes when trading in this market.
Grayscale continues to buy ETH
The Grayscale Ethereum Trust is the company’s second largest portfolio after Bitcoin – which is, in fact, the largest BTC portfolio in the world. ETH accounts for 13.7% of the company’s total funds, while Bitcoin accounts for more than 82%.
A few days before, Grayscale announced the purchase of another 105927 ETH for a total of $ 62.9 million. This corresponds to the sentiment of the markets. December was the most optimistic month on record Crypto Fear & Greed Index, so it’s no surprise that many investors are putting their money in Ethereum and other cryptocurrencies.
Considering the greed and fear meter and the good performance of GrayScale’s products, some investors may be expecting more GrayScale purchases and a little love for the Ethereum markets in the near future.